VANCOUVER, BC, Feb. 23, 2022 /CNW/ – Dolly Varden Silver Corporation (“Dolly Varden” or the “Company“) (TSXV: DV) (OTC: DOLLF) is pleased to announce that Hecla Canada Ltd. (“Hecla”) gave notice of their intent to invest $5.3 million dollars concurrent with the completion of the previously announced transaction whereby Dolly Varden will acquired a 100% interest in the Homestake Ridge gold-silver project (“Homestake Project”), located adjacent to the Dolly Varden Project (“DV Project”) in the Golden Triangle, British Columbia (the “Transaction”).
(CNW Group/Dolly Varden Silver Corp.)
Pursuant to the ancillary rights agreement between Hecla and the Company, dated September 4, 2012, Hecla has subscribed for the purchase of 9,048,539 common shares of the Company in accordance with their anti-dilution right in respect of the Transaction for proceeds of approximately $5.3 million to maintain its pro-rata equity interest in the Company. The common shares to be issued to Hecla would be in addition to those issued as part of the Transaction.
About Dolly Varden Silver Corporation
Dolly Varden Silver Corporation is a mineral exploration company focused on exploration in northwestern British Columbia. The DV Project consists of the namesake Dolly Varden silver property that hosts a unique pure silver mineral resource as well as the nearby Big Bulk copper-gold porphyry property. Adjacent to the DV Project, the Homestake Ridge Project hosts structurally controlled epithermal gold, silver and copper mineralization. Together, the consolidated DV Project and Homestake Ridge Project, to be referred to as the Kitsault Valley Project, create one large, high-grade precious metals project with further synergistic and exploration upside potential. The Kitsault Valley Project is considered to be highly prospective for hosting high-grade precious metal deposits, since it comprises the same structural and stratigraphic setting that host numerous other high-grade deposits (Eskay Creek, Brucejack). The Big Bulk property is prospective for porphyry and skarn style copper and gold mineralization similar to other such deposits in the region (Red Mountain, KSM, Red Chris).
Forward Looking Statements
This release may contain forward-looking statements or forward-looking information under applicable Canadian securities legislation that may not be based on historical fact, including, without limitation, statements containing the words “believe”, “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “potential”, and similar expressions. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Dolly Varden to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Forward looking statements or information in this release relates to, among other things, potential synergies expected from the combination of the DV Project and Homestake Project, the development potential of the property, the completion of the Transaction and the completion of the Hecla subscription.
These forward-looking statements are based on management’s current expectations and beliefs and assume, among other things, the ability of the Company to successfully pursue its current development plans, that future sources of funding will be available to the company, that relevant commodity prices will remain at levels that are economically viable for the Company and that the Company will receive relevant permits in a timely manner in order to enable its operations, but given the uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward-looking statements or information. The Company disclaims any obligation to update, or to publicly announce, any such statements, events or developments except as required by law.
For additional information on risks and uncertainties, see the Company’s most recently filed annual management discussion & analysis (“MD&A“), which is available on SEDAR at www.sedar.com. The risk factors identified in the MD&A are not intended to represent a complete list of factors that could affect the Company.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this news release.
Geology of the Iska Iska Caldera Complex showing locations of Major Breccia Pipe targets, the Santa Barbara Resource Definition Target Zone and diamond drill holes completed and planned.
Figure 2
Preliminary Geological Cross Section NW Extension Target Looking NW – Drill Holes DSB-20 (results this release) and DSB-17 (results pending).
Includes higher-grade sections of 507.64 g Ag eq/t (119.36 g Ag/t, 0.14 g Au/t, 0.57 %Pb and 0.52 %Sn) over 49.55m from 0.0 to 49.55m and 196.67 g Ag eq/t (66.93 g Ag/t, 1.03% Zn, 0.67% Pb and 0.08% Sn) over 77.77m in underground drill hole METSBUG-02.
Hole DSB-20, which is in approximately the centre of the NW Extension target area, intersected 22 reportable intersections with a best result of 129.42 g Ag eq/t (21.79 g Ag/t, 0.27% Zn, 0.36% Pb and 0.12% Sn) over 73.65m including a higher-grade section of 204.03 g Ag eq/t (27.54 g Ag/t, 0.40% Zn, 0.55% Pb and 0.21% Sn) over 28.57m.
TORONTO, Feb. 23, 2022 (GLOBE NEWSWIRE) — Eloro Resources Ltd. (TSX-V: ELO; OTCQX: ELRRF; FSE: P2QM) (“Eloro”, or the “Company”) is pleased to announce assay results from six (6) additional diamond drill holes from its on-going drilling program at the Iska Iska silver-tin polymetallic project in the Potosi Department, southern Bolivia. Hole METSBUG-02 is an underground hole drilled northeast from the Santa Barbara adit for metallurgical purposes and to complete fill-in drilling. The remaining five (5) holes tested the NW extension in the Santa Barbara Mineral Resource Target Area (DSB-12, -13, -15, -20 and -21) on a series of NE-SW sections as shown in Figure 1.
As previously announced (see Eloro’s press release dated January 18, 2022) drilling recommenced on January 17, 2022, with two surface drill rigs and one underground rig. Since the restart, the Company has completed an additional 4,649m of drilling, for an overall total of 45,117m in 80 drill holes, including three holes in progress as shown in Figure 1. Table 1 lists significant assay results. Prices used for calculating Ag equivalent grades are as outlined in Eloro’s February 1, 2022, press release. Table 2 summarizes drill holes with assays pending. Highlights are as follows:
Underground Metallurgical Hole, Santa Barbara Mineral Resource Target Area
Underground hole METSBUG-02, collared in the Santa Barbara adit and drilled at an azimuth of 40 degrees at -10 degrees dip, intersected significant mineralization (Figure 1 and Table 1) over the full length of the hole:
172.43 g Ag eq/t (40.16 g Ag/t, 0.51% Zn, 0.41% Pb and 0.13% Sn) over 303.05m from 0.00 to 303.05 m including higher-grade sections of 507.64 g Ag eq/t (119.36 g Ag/t, 0.14 g Au/t, 0.57 %Pb and 0.52 %Sn) over 49.55m from 0.0 to 49.55m and 196.67 g Ag eq/t (66.93 g Ag/t, 1.03% Zn, 0.67% Pb and 0.08% Sn) over 77.77m from 180.95m to 258.72m.
This hole was designed to intersect midway across the intersection in Hole DHK-18 which returned 129.65 g Ag eq/t over 300.75m (see press release July 28, 2021; grade is 172.18 g Ag eq/t with updated metal prices) in the mineralized envelope to the east of the Santa Barbara Breccia Pipe.
Sectional Drill Holes NW Extension Santa Barbara Mineral Resource Target Area
Significant results have been returned from the five (5) initial sectional drill holes testing the NW Extension of the Santa Barbara mineralized trend. This area is marked by a prominent magnetic anomaly and is underlain by several dacitic domes, possibly related to a secondary caldera. An additional 11 holes totaling 7,859m have been completed to provide coverage on 100m spaced sections over much of the NW Extension target area as shown in Figure 1. Assay results on these holes are pending. Figure 2 is a section along hole DSB-20. Highlights are as follows:
Hole DSB-20, which is in approximately the centre of the NW Extension target area, intersected 22 reportable intersections with a best result of 129.42 g Ag eq/t (21.79 g Ag/t, 0.27% Zn, 0.36% Pb and 0.12% Sn) over 73.65m from 247.56m to 321.21m including a higher-grade section of 204.03 g Ag eq/t (27.54 g Ag/t, 0.40% Zn, 0.55% Pb and 0.21% Sn) over 28.57m from 267.08m to 295.65m.
Hole DSB-21, on the northwesternmost section, intersected 14 reportable intersections including a high-grade Cu zone grading 152.04 g Ag eq/t (9.48 g Ag/t and 1.02% Cu) over 25.27m from 58.85m to 84.12m and 114.77 g Ag eq/t (40.85 g Ag/t, 0.09 g Au/t, 0.69% Zn and 0.18% Pb) over 16.28m from 163.98m to 180.28m.
Hole DSB-15, 100m southeast of Hole DSB-21, intersected 12 reportable intersections including 112.43 g Ag eq/t (9.98 g Ag/t, 0.10 g Au/t, 0.21% Zn, 0.34% Pb, 0.09% Sn and 0.12% Cd) over 10.53m from 293.70m to 304.23m and 186.75 g Ag eq/t (14.67 g Ag/t, 0.13 g Au/t, 0.27% Zn, 0.17% Cu and 0.19% Sn) over 19.65m from 710.97m to 730.62m.
Hole DSB-12, collared 200m southeast of hole DSB-15 and 100m northwest of hole DSB-20, intersected 20 reportable mineralized intersections of which nine ranged from 10.41m to 24.07m long. Best results were 130.28 g Ag eq/t (92.32 g Ag/t, 0.06% Cu) over 10.41m from 332.64 to 311.90, 129.54 g Ag eq/t (10.19 g Ag/t, 0.22 % Zn, 0.15% Cu, 0.13% Sn) over 18.04m from 487.76m to 505.80m, 116.73 g Ag eq/t (10.18 g Ag/t, 0.12% Cu, 0.10 % Sn and 0.13% Bi) over 24.07m from 594.44m to 618.51m and 164.01 g Ag eq/t (7.80 g Ag/t, 0.11 g Au/t, 0.39% Zn, 0.21% Cu, 0.11% Bi) over 21.05m from 753.50m to 771.49m.
Hole DSB-13, drilled on the same section but shallower than hole DSB-12, intersected 15 reportable mineralized intersections of which the best results were 48.53 g Ag eq/t (5.66 g Ag/t and 0.29% Zn) over 37.58m from 161.71m to 199.29m, 171.55 g Ag eq/t over 9.01m (21.45 g Ag/t, 0.54 g Au/t, 0.38% Zn, 0.14% Sn) from 221.66m to 230.67m, 51.89 g Ag eq/t (3.48 g Ag/t and 0.24% Zn) over 39.13m from 320.57m to 361.18m and 71.71 g Ag eq/t over 8.93m (7.07 g Ag/t, 0.11% Cu and 0.06% Sn) from 601.95m to 610.88m.
Tom Larsen, CEO of Eloro, commented: “This new underground hole is the longest and highest-grade intersection obtained thus far in our diamond drill program. Results from the step-out holes on the NW extension are also very encouraging. Turnaround at both the ALS and AHK laboratories continues to improve so we anticipate being able to have a more regular release of results going forward. Drilling productivity continues to be very high with more than 4,600m completed by the three drills since our restart last month. We will shortly complete our underground drilling and will exchange this drill for a high capacity surface rig which will further increase our production.”
Dr. Bill Pearson, P.Geo., Eloro’s Executive Vice President Exploration, added: “The 100m-spaced sectional drilling has been completed on the NW Extension, however it is evident that much further drilling will be required to fully evaluate this exciting target area. Underground drilling is continuing from the Santa Barbara adit to test the major magnetic anomaly to the southwest. The first of a series of surface holes testing the southern Santa Barbara target area is in progress, with the aim of further expanding the high-grade mineralization already identified in this area. Hole DPC-07 in the Porco area is testing a major magnetic anomaly, while additional drill holes are planned to further test the Porco Breccia Pipe deeper. Hole DM2-01, to be drilled in the Mina 2 area in the southeast part of the property, will test for a potential tin porphyry at depth. Channel sampling and geological mapping are in progress in the Mina 2 workings.”
Table 1: Significant Results, Diamond Drilling, Santa Barbara Resource Definition Target Area as at February 23, 2022.
SANTA BARBARA RESOURCE DEFINITION TARGET ZONE
UNDERGROUND DRILL HOLE – METALLURGICAL HOLE
Hole No.
From (m)
To (m)
Length (m)
Ag
Au
Zn
Pb
Cu
Sn
Bi
Cd
Ag eq
g/t
g/t
%
%
%
%
%
%
g/t
METSBUG-02
0.00
303.05
303.05
40.16
0.06
0.51
0.41
0.09
0.13
0.006
0.004
172.43
Incl.
0.00
49.55
49.55
119.36
0.14
0.06
0.57
0.38
0.52
0.010
0.001
507.64
Incl.
180.95
258.72
77.77
66.93
0.04
1.03
0.67
0.06
0.08
0.013
0.011
196.67
SANTA BARBARA NW EXTENSION SECTIONAL DRILLING
Hole No.
From (m)
To (m)
Length (m)
Ag
Au
Zn
Pb
Cu
Sn
Bi
Cd
Ag eq
g/t
g/t
%
%
%
%
%
%
g/t
DSB-21
21.15
22.61
1.46
8.00
0.23
0.00
0.07
0.02
0.06
0.022
0.001
68.81
58.85
84.12
25.27
9.48
0.02
0.01
0.05
1.02
0.00
0.001
0.001
152.04
163.98
180.26
16.28
40.85
0.09
0.69
0.18
0.04
0.03
0.019
0.012
114.77
228.21
243.27
15.06
24.11
0.06
0.50
0.10
0.04
0.04
0.002
0.002
87.05
255.28
261.26
5.98
27.07
0.06
0.61
0.14
0.02
0.03
0.001
0.001
83.85
268.78
270.28
1.50
32.00
0.08
0.30
0.03
0.15
0.15
0.018
0.001
165.47
309.61
315.61
6.00
15.70
0.02
0.68
0.44
0.01
0.01
0.001
0.002
67.35
453.86
455.38
1.52
25.00
0.05
0.02
0.03
0.06
0.05
0.025
0.001
74.03
513.92
515.42
1.50
68.00
0.03
0.03
0.00
0.03
0.01
0.002
0.001
83.83
521.39
525.88
4.49
24.09
0.06
0.06
0.01
0.05
0.04
0.005
0.001
64.40
578.55
581.40
2.85
1.51
0.01
2.61
0.00
0.01
0.00
0.001
0.001
125.26
638.51
640.00
1.49
59.00
0.03
0.15
0.01
0.31
0.28
0.013
0.001
277.24
649.04
656.55
7.51
20.09
0.02
0.64
0.01
0.12
0.11
0.008
0.001
135.84
665.75
667.25
1.50
44.00
0.14
0.03
0.02
0.29
0.28
0.547
0.001
354.97
DSB-20
46.66
51.20
4.54
9.69
0.01
0.01
0.19
1.21
0.00
0.001
0.001
180.58
82.61
85.56
2.95
5.54
0.02
0.37
0.46
0.01
0.01
0.004
0.073
51.71
118.70
123.22
4.52
8.76
0.03
2.14
0.42
0.01
0.06
0.002
0.060
166.00
150.28
162.26
11.98
17.68
0.03
0.62
0.49
0.01
0.05
0.002
0.026
94.64
188.89
221.88
32.99
5.29
0.02
0.35
0.14
0.01
0.10
0.002
0.008
85.30
233.97
235.50
1.53
17.00
0.02
0.59
0.32
0.01
0.06
0.002
0.002
92.39
247.56
321.21
73.65
21.79
0.07
0.27
0.36
0.01
0.12
0.028
0.001
129.42
Incl.
267.08
295.65
28.57
27.54
0.08
0.40
0.55
0.02
0.21
0.037
0.001
204.03
352.73
357.24
4.51
4.69
0.01
0.54
0.25
0.01
0.02
0.001
0.001
51.73
360.23
361.73
1.50
4.00
0.01
1.38
0.01
0.01
0.01
0.001
0.001
76.68
399.15
402.09
2.94
3.02
0.03
0.34
0.17
0.01
0.05
0.001
0.001
59.64
408.26
409.83
1.57
4.00
0.01
0.63
0.02
0.01
0.05
0.001
0.001
64.50
426.27
427.72
1.45
4.00
0.02
0.01
0.01
0.01
0.12
0.003
0.001
80.50
499.10
500.53
1.43
2.00
0.01
0.02
0.01
0.03
0.08
0.001
0.001
55.86
518.38
536.18
17.80
12.01
0.06
0.37
0.08
0.03
0.04
0.045
0.001
71.11
552.63
568.40
15.77
16.71
0.15
0.08
0.03
0.10
0.10
0.059
0.001
116.90
591.30
598.70
7.40
9.41
0.21
0.05
0.02
0.05
0.06
0.014
0.001
73.18
697.09
698.50
1.41
6.00
0.02
0.00
0.00
0.10
0.10
0.007
0.001
82.51
719.40
723.90
4.50
9.34
0.06
0.03
0.01
0.11
0.10
0.015
0.001
94.70
743.47
749.50
6.03
21.42
0.18
0.11
0.03
0.59
0.30
0.007
0.001
297.99
770.56
791.43
20.87
5.24
0.08
0.05
0.01
0.27
0.05
0.075
0.001
93.75
814.25
820.15
5.90
2.58
0.02
0.06
0.01
0.23
0.03
0.364
0.001
118.69
866.21
868.00
1.79
3.00
0.03
0.00
0.00
0.43
0.04
0.034
0.001
90.39
SANTA BARBARA NW EXTENSION SECTIONAL DRILLING (CON’T)
Hole No.
From (m)
To (m)
Length (m)
Ag
Au
Zn
Pb
Cu
Sn
Bi
Cd
Ag eq
g/t
g/t
%
%
%
%
%
%
g/t
DSB-15
23.76
29.83
6.07
22.14
0.06
0.00
0.08
0.01
0.10
0.003
0.001
93.29
55.33
58.30
2.97
2.00
0.05
0.01
0.02
1.34
0.02
0.001
0.001
196.03
173.61
178.12
4.52
21.35
0.14
0.62
0.20
0.02
0.03
0.002
0.001
86.78
293.70
304.23
10.53
9.98
0.10
0.21
0.34
0.08
0.09
0.022
0.121
112.43
314.20
322.74
8.54
4.13
0.04
0.59
0.33
0.05
0.06
0.008
0.009
89.94
435.66
437.19
1.53
0.50
0.01
0.11
0.00
0.00
0.14
0.001
0.001
88.97
461.30
462.80
1.50
2.00
0.01
0.13
0.01
0.01
0.14
0.004
0.001
90.73
474.55
476.05
1.50
24.00
0.06
0.03
0.03
0.20
0.15
0.031
0.001
153.19
480.55
486.53
5.98
7.52
0.02
0.12
0.01
0.11
0.10
0.011
0.001
90.20
532.48
533.97
1.49
34.00
0.04
0.01
0.01
0.13
0.11
0.034
0.001
126.43
582.19
583.74
1.55
1.00
0.01
2.03
0.00
0.01
0.03
0.001
0.001
113.31
710.97
730.62
19.65
14.67
0.13
0.27
0.00
0.17
0.19
0.070
0.001
186.75
DSB-13
50.50
66.67
4.48
18.11
0.01
0.01
0.08
0.20
0.02
0.001
0.005
57.64
111.90
124.02
12.12
4.67
0.01
0.71
0.08
0.01
0.02
0.001
0.004
54.94
161.71
199.29
37.58
5.66
0.07
0.29
0.09
0.02
0.03
0.001
0.004
48.53
208.19
211.20
3.01
16.02
0.27
0.48
0.03
0.09
0.03
0.001
0.005
90.12
221.66
230.67
9.01
21.45
0.54
0.38
0.07
0.02
0.14
0.009
0.005
171.55
272.71
274.22
1.51
27.00
0.30
0.06
0.06
0.04
0.07
0.019
0.005
105.33
287.75
292.25
4.50
5.67
0.03
1.18
0.31
0.02
0.06
0.002
0.003
108.69
308.70
311.64
2.94
3.00
0.02
0.37
0.25
0.01
0.04
0.001
0.002
52.61
320.57
361.18
39.13
3.48
0.08
0.24
0.07
0.02
0.04
0.002
0.005
51.89
405.83
410.50
4.67
8.63
0.10
0.73
0.03
0.05
0.03
0.017
0.005
78.28
432.52
434.06
1.54
5.00
2.42
0.18
0.02
0.06
0.01
0.506
0.005
312.23
525.10
526.62
1.52
3.00
0.11
0.03
0.01
0.05
0.11
0.044
0.005
93.10
537.14
540.23
3.09
6.94
0.02
0.01
0.01
0.08
0.08
0.029
0.005
74.07
601.95
610.88
8.93
7.07
0.03
0.02
0.01
0.11
0.06
0.047
0.005
71.71
695.03
696.50
1.47
12.00
0.10
0.07
0.02
0.26
0.11
0.13
0.01
147.95
DSB-12
157.18
172.03
14.85
45.47
0.08
0.12
0.11
0.02
0.04
0.003
0.003
89.84
209.63
221.60
11.97
28.82
0.04
0.03
0.10
0.03
0.05
0.009
0.004
71.87
301.26
311.90
10.64
54.31
0.02
0.01
0.00
0.04
0.02
0.007
0.005
78.19
332.64
343.05
10.41
92.32
0.05
0.02
0.01
0.06
0.04
0.005
0.004
130.28
377.74
379.19
1.45
9.00
0.10
0.01
0.01
0.06
0.07
0.002
0.005
66.35
428.94
430.58
1.64
3.00
0.01
0.02
0.01
0.02
0.09
0.001
0.005
61.28
453.15
466.73
13.58
11.53
0.03
0.03
0.01
0.08
0.07
0.007
0.005
68.58
487.76
505.80
18.04
10.19
0.04
0.22
0.03
0.15
0.13
0.035
0.005
129.54
510.30
517.79
7.49
1.79
0.08
0.08
0.01
0.04
0.05
0.014
0.005
48.24
523.80
529.68
5.88
3.55
0.32
0.03
0.01
0.10
0.10
0.012
0.005
105.18
561.32
562.84
1.52
3.00
0.03
0.04
0.01
0.12
0.12
0.008
0.005
97.29
568.86
574.84
5.98
3.77
0.02
0.06
0.01
0.08
0.07
0.042
0.005
65.41
586.83
588.40
1.57
3.00
0.01
0.03
0.00
0.12
0.11
0.017
0.005
90.61
594.44
618.51
24.07
10.18
0.07
0.05
0.01
0.12
0.10
0.128
0.005
116.73
639.64
641.15
1.51
5.00
0.01
0.00
0.01
0.13
0.09
0.008
0.005
80.70
660.57
663.58
3.01
5.01
0.17
0.26
0.01
0.23
0.02
0.060
0.005
82.79
669.60
672.58
2.98
5.01
0.14
0.11
0.01
0.20
0.07
0.060
0.005
102.57
686.16
690.63
4.47
4.97
0.36
0.07
0.01
0.15
0.03
0.039
0.005
81.16
717.52
738.57
21.05
7.80
0.11
0.39
0.03
0.21
0.14
0.109
0.005
164.01
753.50
771.49
17.99
1.81
0.06
0.06
0.03
0.21
0.03
0.18
0.01
91.66
Note: True width of the mineralization is not known at the present time, but based on the current understanding of the relationship between drill orientation/inclination and the mineralization within the breccia pipes and the host rocks such as sandstones and dacites. It is estimated that true width ranges between 70% and 90% of the down hole interval length but this will be confirmed by further drilling and geological modelling.
Chemical symbols: Ag= silver, Au = gold, Zn = zinc, Pb = lead, Cu = copper, Sn = tin, Bi = bismuth, Cd = cadmium and g Ag eq/t = grams silver equivalent per tonne. Quantities are given in percent (%) for Zn, Pb Cu, Sn, Bi and Cd and in grams per tonne (g/t) for Ag, Au and Ag eq.
Metal prices and conversion factors used for calculation of g Ag eq/t (grams Ag per grams x metal ratio) are as follows (Prices updated as of January 30, 2022, to more accurately reflect current metal prices):
Element
Price $US (per kg)
Ratio to Ag
Ag
$722.56
1.0000
Sn
$42.56
0.0589
Zn
$3.30
0.0046
Pb
$2.33
0.0032
Au
$57,604.00
79.7221
Cu
$9.68
0.0134
Bi
$12.76
0.0177
Cd
$5.50
0.0076
In calculating the intersections reported in this press release a sample cutoff of 30 g Ag eq/t was used with generally a maximum dilution of 3 continuous samples below cutoff included within a mineralized section unless more dilution is justified geologically.
The equivalent grade calculations are based on the stated metal prices and are provided for comparative purposes only, due to the polymetallic nature of the deposit. Metallurgical tests are in progress by Blue Coast Ltd. to establish levels of recovery for each element reported but currently the potential recovery for each element has not yet been established. While there is no assurance that all or any of the reported concentrations of metals will be recoverable, Bolivia has a long history of successfully mining and processing similar polymetallic deposits which is well documented in the landmark volume “Yacimientos Metaliferos de Bolivia” by Dr. Osvaldo R. Arce Burgoa, P.Geo.
Table 2: Summary of Diamond Drill Holes Completed with Assays Pending and Drill Holes in Progress at Iska Iska from February 23, 2022 press release.
Hole No.
Type
Collar Easting
Collar Northing
Elev
Azimuth
Angle
Hole Length m
Surface Drilling Northwest Extension Santa Barbara
DSB-14
S
205283.0
7656587.2
4175.0
225
-65
968.5
DSB-16
S
204973.1
7657053.8
4165.0
225
-65
862.0
DSB-17
S
7656765.4
205131.3
4173.0
225
-40
841.0
DSB-18
S
7656676.3
205207.1
4175.0
225
-40
890.4
DSB-19
S
7656676.3
205207.1
4175.0
225
-65
803.3
DSB-22
S
7657208.4
204799.4
4145.0
225
-40
258.4
DSB-23
S
205341.0
7656535.0
4177.0
225
-40
661.3
DSB-24
S
205341.0
7656535.0
4177.0
225
-65
343.4
DSB-25
S
205283.0
7656587.2
4175.0
225
-40
615.3
DSB-26
S
205044.5
7656982.6
4150.0
225
-40
815.4
DSB-27
S
205044.5
7656982.6
4150.0
225
-65
800.4
Subtotal
7,859.4
Underground Drilling Santa Barbara Adit
DSBU-3
UG
205285.2
7656074.8
4165.0
270
-20
443.5
DSBU-4
UG
205285.2
7656074.8
4165.0
180
-20
570.0
DSBU-5
UG
205285.2
7656074.8
4165.0
0
-40
491.7
DSBU-6
UG
205285.2
7656074.8
4165.0
0
-65
253.5
DSBU-7
UG
205284.5
7656080.0
4167.1
235
-50
800.9
Subtotal
2,559.6
DSBU-8
UG
205284.5
7656080.0
4167.1
200
-50
In progress
Underground Metallurgical Drill Holes Santa Barbara
METSBU-01
UG
205285.2
7656074.8
4165.0
10
-35
351.0
Subtotal
351.0
Surface Drilling South Extension Santa Barbara
DSBS-01
S
205300.0
7655563.0
4204.0
30°
-30
In progress
Porco Target Area – Surface Drill Program
DPC-04
S
205457.2
7655110.9
4175.0
0
-60
371.4
DPC-05
S
205457.2
7655110.9
4175.0
90
-60
407.5
DPC-06
S
205457.2
7655110.9
4175.0
243
-60
716.4
DPC-08
S
205456.2
7655113.4
4175.9
243
-60
800.4
Subtotal
2,295.7
DPC-07
S
205090.0
7655343.7
4310.0
235
-65
In progress
TOTAL
13,065.7
S = Surface UG=Underground; collar coordinates in metres; azimuth and dip in degrees. Total drilling completed since the start of the program on September 13, 2020 to December 17, 2021 is 40,468 m in 73 holes (26 underground holes and 47 surface holes). From re-start of drilling on January 17, 2022, an additional 4,649m has been completed bringing the overall total to 45,117m in 80 drill holes (27 underground drill holes and 53 surface drill holes) including 3 holes in progress.
Dr. Osvaldo Arce, P. Geo., General Manager of Minera Tupiza, and a Qualified Person in the context of NI 43-101, has reviewed and approved the technical content of this news release. Dr. Bill Pearson, P.Geo., Executive Vice President Exploration Eloro, and who has more than 45 years of worldwide mining exploration experience including extensive work in South America, manages the overall technical program working closely with Dr. Osvaldo Arce, P.Geo., Manager of Minera Tupiza. Dr. Quinton Hennigh, P.Geo., Senior Technical Advisor to Eloro and Independent Technical Advisor, Mr. Charley Murahwi P. Geo., FAusIMM of Micon International Limited are regularly consulted on technical aspects of the project.
Eloro is utilizing both ALS and AHK for drill core analysis, both of whom are major international accredited laboratories. Drill samples sent to ALS are prepared in ALS Bolivia Ltda’s preparation facility in Oruro, Bolivia with pulps sent to the main ALS Global laboratory in Lima for analysis. More recently Eloro has had ALS send pulps to their laboratory at Galway in Ireland. Eloro employs an industry standard QA/QC program with standards, blanks and duplicates inserted into each batch of samples analyzed with selected check samples sent to a separate accredited laboratory.
Drill core samples sent to AHK Laboratories are sent to their preparation laboratory in Oruro with pulps sent to the AHK laboratory in Lima, Peru. Check samples between ALS and AHK are regularly done as a QA/QC check. AHK is following the same analytical protocols used as with ALS and with the same QA/QC protocols. Turnaround time, which has been impacted by the recent surge in Covid-19, has been improving following the Christmas break and it is hoped that most of the sample backlog will be cleared in the next 4-6 weeks.
About Iska Iska
Iska Iska silver-tin polymetallic project is a road accessible, royalty-free property, wholly controlled by the Title Holder, Empresa Minera Villegas S.R.L. and is located 48 km north of Tupiza city, in the Sud Chichas Province of the Department of Potosi in southern Bolivia. Eloro has an option to earn a 99% interest in Iska Iska.
Iska Iska is a major silver-tin polymetallic porphyry-epithermal complex associated with a Miocene possibly collapsed/resurgent caldera, emplaced on Ordovician age rocks with major breccia pipes, dacitic domes and hydrothermal breccias. The caldera is 1.6km by 1.8km in dimension with a vertical extent of at least 1km. Mineralization age is similar to Cerro Rico de Potosí and other major deposits such as San Vicente, Chorolque, Tasna and Tatasi located in the same geological trend.
Eloro began underground diamond drilling from the Huayra Kasa underground workings at Iska Iska on September 13, 2020. On November 18, 2020, Eloro announced the discovery of a significant breccia pipe with extensive silver polymetallic mineralization just east of the Huayra Kasa underground workings and a high-grade gold-bismuth zone in the underground workings. On November 24, 2020, Eloro announced the discovery of the SBBP approximately 150m southwest of the Huayra Kasa underground workings.
Subsequently, on January 26, 2021, Eloro announced significant results from the first drilling at the SBBP including the discovery hole DHK-15 which returned 129.60 g Ag eq/t over 257.5m (29.53g Ag/t, 0.078g Au/t, 1.45%Zn, 0.59%Pb, 0.080%Cu, 0.056%Sn, 0.0022%In and 0.0064% Bi from 0.0m to 257.5m. Subsequent drilling has confirmed significant values of Ag-Sn polymetallic mineralization in the SBBP and the adjacent CBP. A substantive mineralized envelope which is open along strike and down-dip extends around both major breccia pipes. Continuous channel sampling of the Santa Barbara Adit located to the east of SBBP returned 442 g Ag eq/t (164.96 g Ag/t, 0.46%Sn, 3.46% Pb and 0.14% Cu) over 166m including 1,092 g Ag eq/t (446 g Ag/t, 9.03% Pb and 1.16% Sn) over 56.19m. The west end of the adit intersects the end of the SBBP.
Since the initial discovery hole, Eloro has released a number of significant drill results in the SBBP and the surrounding mineralized envelope which along with geophysical data has defined a target zone 1400m along strike, 500m wide and that extends to a depth of 600m. This zone is open along strike to the northwest and southeast as well as to the southwest. The Company’s nearer term objective is to outline a maiden NI 43-101 compliant mineral resource within this large target area. This work is advancing well with the mineral resource targeted to be completed in Q2 2022. Exploration drilling is also planned on other major targets in the Iska Iska Caldera Complex including the Porco and Mina 2 areas.
About Eloro Resources Ltd.
Eloro is an exploration and mine development company with a portfolio of gold and base-metal properties in Bolivia, Peru and Quebec. Eloro has an option to acquire a 99% interest in the highly prospective Iska Iska Property, which can be classified as a polymetallic epithermal-porphyry complex, a significant mineral deposit type in the Potosi Department, in southern Bolivia. Eloro commissioned a NI 43-101 Technical Report on Iska Iska, which was completed by Micon International Limited and is available on Eloro’s website and under its filings on SEDAR. Iska Iska is a road-accessible, royalty-free property. Eloro also owns an 82% interest in the La Victoria Gold/Silver Project, located in the North-Central Mineral Belt of Peru some 50 km south of Barrick’s Lagunas Norte Gold Mine and Pan American Silver’s La Arena Gold Mine. La Victoria consists of eight mining concessions and eight mining claims encompassing approximately 89 square kilometres. La Victoria has good infrastructure with access to road, water and electricity and is located at an altitude that ranges from 3,150 m to 4,400 m above sea level.
For further information please contact either Thomas G. Larsen, Chairman and CEO or Jorge Estepa, Vice-President at (416) 868-9168.
Information in this news release may contain forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company’s plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company. There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
Eloro Resources Ltd.
Figure 1
Geology of the Iska Iska Caldera Complex showing locations of Major Breccia Pipe targets, the Santa Barbara Resource Definition Target Zone and diamond drill holes completed and planned.
Figure 2
Preliminary Geological Cross Section NW Extension Target Looking NW – Drill Holes DSB-20 (results this release) and DSB-17 (results pending).
Includes higher-grade sections of 507.64 g Ag eq/t (119.36 g Ag/t, 0.14 g Au/t, 0.57 %Pb and 0.52 %Sn) over 49.55m from 0.0 to 49.55m and 196.67 g Ag eq/t (66.93 g Ag/t, 1.03% Zn, 0.67% Pb and 0.08% Sn) over 77.77m in underground drill hole METSBUG-02.
Hole DSB-20, which is in approximately the centre of the NW Extension target area, intersected 22 reportable intersections with a best result of 129.42 g Ag eq/t (21.79 g Ag/t, 0.27% Zn, 0.36% Pb and 0.12% Sn) over 73.65m including a higher-grade section of 204.03 g Ag eq/t (27.54 g Ag/t, 0.40% Zn, 0.55% Pb and 0.21% Sn) over 28.57m.
TORONTO, Feb. 23, 2022 (GLOBE NEWSWIRE) — Eloro Resources Ltd. (TSX-V: ELO; OTCQX: ELRRF; FSE: P2QM) (“Eloro”, or the “Company”) is pleased to announce assay results from six (6) additional diamond drill holes from its on-going drilling program at the Iska Iska silver-tin polymetallic project in the Potosi Department, southern Bolivia. Hole METSBUG-02 is an underground hole drilled northeast from the Santa Barbara adit for metallurgical purposes and to complete fill-in drilling. The remaining five (5) holes tested the NW extension in the Santa Barbara Mineral Resource Target Area (DSB-12, -13, -15, -20 and -21) on a series of NE-SW sections as shown in Figure 1.
As previously announced (see Eloro’s press release dated January 18, 2022) drilling recommenced on January 17, 2022, with two surface drill rigs and one underground rig. Since the restart, the Company has completed an additional 4,649m of drilling, for an overall total of 45,117m in 80 drill holes, including three holes in progress as shown in Figure 1. Table 1 lists significant assay results. Prices used for calculating Ag equivalent grades are as outlined in Eloro’s February 1, 2022, press release. Table 2 summarizes drill holes with assays pending. Highlights are as follows:
Underground Metallurgical Hole, Santa Barbara Mineral Resource Target Area
Underground hole METSBUG-02, collared in the Santa Barbara adit and drilled at an azimuth of 40 degrees at -10 degrees dip, intersected significant mineralization (Figure 1 and Table 1) over the full length of the hole:
172.43 g Ag eq/t (40.16 g Ag/t, 0.51% Zn, 0.41% Pb and 0.13% Sn) over 303.05m from 0.00 to 303.05 m including higher-grade sections of 507.64 g Ag eq/t (119.36 g Ag/t, 0.14 g Au/t, 0.57 %Pb and 0.52 %Sn) over 49.55m from 0.0 to 49.55m and 196.67 g Ag eq/t (66.93 g Ag/t, 1.03% Zn, 0.67% Pb and 0.08% Sn) over 77.77m from 180.95m to 258.72m.
This hole was designed to intersect midway across the intersection in Hole DHK-18 which returned 129.65 g Ag eq/t over 300.75m (see press release July 28, 2021; grade is 172.18 g Ag eq/t with updated metal prices) in the mineralized envelope to the east of the Santa Barbara Breccia Pipe.
Sectional Drill Holes NW Extension Santa Barbara Mineral Resource Target Area
Significant results have been returned from the five (5) initial sectional drill holes testing the NW Extension of the Santa Barbara mineralized trend. This area is marked by a prominent magnetic anomaly and is underlain by several dacitic domes, possibly related to a secondary caldera. An additional 11 holes totaling 7,859m have been completed to provide coverage on 100m spaced sections over much of the NW Extension target area as shown in Figure 1. Assay results on these holes are pending. Figure 2 is a section along hole DSB-20. Highlights are as follows:
Hole DSB-20, which is in approximately the centre of the NW Extension target area, intersected 22 reportable intersections with a best result of 129.42 g Ag eq/t (21.79 g Ag/t, 0.27% Zn, 0.36% Pb and 0.12% Sn) over 73.65m from 247.56m to 321.21m including a higher-grade section of 204.03 g Ag eq/t (27.54 g Ag/t, 0.40% Zn, 0.55% Pb and 0.21% Sn) over 28.57m from 267.08m to 295.65m.
Hole DSB-21, on the northwesternmost section, intersected 14 reportable intersections including a high-grade Cu zone grading 152.04 g Ag eq/t (9.48 g Ag/t and 1.02% Cu) over 25.27m from 58.85m to 84.12m and 114.77 g Ag eq/t (40.85 g Ag/t, 0.09 g Au/t, 0.69% Zn and 0.18% Pb) over 16.28m from 163.98m to 180.28m.
Hole DSB-15, 100m southeast of Hole DSB-21, intersected 12 reportable intersections including 112.43 g Ag eq/t (9.98 g Ag/t, 0.10 g Au/t, 0.21% Zn, 0.34% Pb, 0.09% Sn and 0.12% Cd) over 10.53m from 293.70m to 304.23m and 186.75 g Ag eq/t (14.67 g Ag/t, 0.13 g Au/t, 0.27% Zn, 0.17% Cu and 0.19% Sn) over 19.65m from 710.97m to 730.62m.
Hole DSB-12, collared 200m southeast of hole DSB-15 and 100m northwest of hole DSB-20, intersected 20 reportable mineralized intersections of which nine ranged from 10.41m to 24.07m long. Best results were 130.28 g Ag eq/t (92.32 g Ag/t, 0.06% Cu) over 10.41m from 332.64 to 311.90, 129.54 g Ag eq/t (10.19 g Ag/t, 0.22 % Zn, 0.15% Cu, 0.13% Sn) over 18.04m from 487.76m to 505.80m, 116.73 g Ag eq/t (10.18 g Ag/t, 0.12% Cu, 0.10 % Sn and 0.13% Bi) over 24.07m from 594.44m to 618.51m and 164.01 g Ag eq/t (7.80 g Ag/t, 0.11 g Au/t, 0.39% Zn, 0.21% Cu, 0.11% Bi) over 21.05m from 753.50m to 771.49m.
Hole DSB-13, drilled on the same section but shallower than hole DSB-12, intersected 15 reportable mineralized intersections of which the best results were 48.53 g Ag eq/t (5.66 g Ag/t and 0.29% Zn) over 37.58m from 161.71m to 199.29m, 171.55 g Ag eq/t over 9.01m (21.45 g Ag/t, 0.54 g Au/t, 0.38% Zn, 0.14% Sn) from 221.66m to 230.67m, 51.89 g Ag eq/t (3.48 g Ag/t and 0.24% Zn) over 39.13m from 320.57m to 361.18m and 71.71 g Ag eq/t over 8.93m (7.07 g Ag/t, 0.11% Cu and 0.06% Sn) from 601.95m to 610.88m.
Tom Larsen, CEO of Eloro, commented: “This new underground hole is the longest and highest-grade intersection obtained thus far in our diamond drill program. Results from the step-out holes on the NW extension are also very encouraging. Turnaround at both the ALS and AHK laboratories continues to improve so we anticipate being able to have a more regular release of results going forward. Drilling productivity continues to be very high with more than 4,600m completed by the three drills since our restart last month. We will shortly complete our underground drilling and will exchange this drill for a high capacity surface rig which will further increase our production.”
Dr. Bill Pearson, P.Geo., Eloro’s Executive Vice President Exploration, added: “The 100m-spaced sectional drilling has been completed on the NW Extension, however it is evident that much further drilling will be required to fully evaluate this exciting target area. Underground drilling is continuing from the Santa Barbara adit to test the major magnetic anomaly to the southwest. The first of a series of surface holes testing the southern Santa Barbara target area is in progress, with the aim of further expanding the high-grade mineralization already identified in this area. Hole DPC-07 in the Porco area is testing a major magnetic anomaly, while additional drill holes are planned to further test the Porco Breccia Pipe deeper. Hole DM2-01, to be drilled in the Mina 2 area in the southeast part of the property, will test for a potential tin porphyry at depth. Channel sampling and geological mapping are in progress in the Mina 2 workings.”
Table 1: Significant Results, Diamond Drilling, Santa Barbara Resource Definition Target Area as at February 23, 2022.
SANTA BARBARA RESOURCE DEFINITION TARGET ZONE
UNDERGROUND DRILL HOLE – METALLURGICAL HOLE
Hole No.
From (m)
To (m)
Length (m)
Ag
Au
Zn
Pb
Cu
Sn
Bi
Cd
Ag eq
g/t
g/t
%
%
%
%
%
%
g/t
METSBUG-02
0.00
303.05
303.05
40.16
0.06
0.51
0.41
0.09
0.13
0.006
0.004
172.43
Incl.
0.00
49.55
49.55
119.36
0.14
0.06
0.57
0.38
0.52
0.010
0.001
507.64
Incl.
180.95
258.72
77.77
66.93
0.04
1.03
0.67
0.06
0.08
0.013
0.011
196.67
SANTA BARBARA NW EXTENSION SECTIONAL DRILLING
Hole No.
From (m)
To (m)
Length (m)
Ag
Au
Zn
Pb
Cu
Sn
Bi
Cd
Ag eq
g/t
g/t
%
%
%
%
%
%
g/t
DSB-21
21.15
22.61
1.46
8.00
0.23
0.00
0.07
0.02
0.06
0.022
0.001
68.81
58.85
84.12
25.27
9.48
0.02
0.01
0.05
1.02
0.00
0.001
0.001
152.04
163.98
180.26
16.28
40.85
0.09
0.69
0.18
0.04
0.03
0.019
0.012
114.77
228.21
243.27
15.06
24.11
0.06
0.50
0.10
0.04
0.04
0.002
0.002
87.05
255.28
261.26
5.98
27.07
0.06
0.61
0.14
0.02
0.03
0.001
0.001
83.85
268.78
270.28
1.50
32.00
0.08
0.30
0.03
0.15
0.15
0.018
0.001
165.47
309.61
315.61
6.00
15.70
0.02
0.68
0.44
0.01
0.01
0.001
0.002
67.35
453.86
455.38
1.52
25.00
0.05
0.02
0.03
0.06
0.05
0.025
0.001
74.03
513.92
515.42
1.50
68.00
0.03
0.03
0.00
0.03
0.01
0.002
0.001
83.83
521.39
525.88
4.49
24.09
0.06
0.06
0.01
0.05
0.04
0.005
0.001
64.40
578.55
581.40
2.85
1.51
0.01
2.61
0.00
0.01
0.00
0.001
0.001
125.26
638.51
640.00
1.49
59.00
0.03
0.15
0.01
0.31
0.28
0.013
0.001
277.24
649.04
656.55
7.51
20.09
0.02
0.64
0.01
0.12
0.11
0.008
0.001
135.84
665.75
667.25
1.50
44.00
0.14
0.03
0.02
0.29
0.28
0.547
0.001
354.97
DSB-20
46.66
51.20
4.54
9.69
0.01
0.01
0.19
1.21
0.00
0.001
0.001
180.58
82.61
85.56
2.95
5.54
0.02
0.37
0.46
0.01
0.01
0.004
0.073
51.71
118.70
123.22
4.52
8.76
0.03
2.14
0.42
0.01
0.06
0.002
0.060
166.00
150.28
162.26
11.98
17.68
0.03
0.62
0.49
0.01
0.05
0.002
0.026
94.64
188.89
221.88
32.99
5.29
0.02
0.35
0.14
0.01
0.10
0.002
0.008
85.30
233.97
235.50
1.53
17.00
0.02
0.59
0.32
0.01
0.06
0.002
0.002
92.39
247.56
321.21
73.65
21.79
0.07
0.27
0.36
0.01
0.12
0.028
0.001
129.42
Incl.
267.08
295.65
28.57
27.54
0.08
0.40
0.55
0.02
0.21
0.037
0.001
204.03
352.73
357.24
4.51
4.69
0.01
0.54
0.25
0.01
0.02
0.001
0.001
51.73
360.23
361.73
1.50
4.00
0.01
1.38
0.01
0.01
0.01
0.001
0.001
76.68
399.15
402.09
2.94
3.02
0.03
0.34
0.17
0.01
0.05
0.001
0.001
59.64
408.26
409.83
1.57
4.00
0.01
0.63
0.02
0.01
0.05
0.001
0.001
64.50
426.27
427.72
1.45
4.00
0.02
0.01
0.01
0.01
0.12
0.003
0.001
80.50
499.10
500.53
1.43
2.00
0.01
0.02
0.01
0.03
0.08
0.001
0.001
55.86
518.38
536.18
17.80
12.01
0.06
0.37
0.08
0.03
0.04
0.045
0.001
71.11
552.63
568.40
15.77
16.71
0.15
0.08
0.03
0.10
0.10
0.059
0.001
116.90
591.30
598.70
7.40
9.41
0.21
0.05
0.02
0.05
0.06
0.014
0.001
73.18
697.09
698.50
1.41
6.00
0.02
0.00
0.00
0.10
0.10
0.007
0.001
82.51
719.40
723.90
4.50
9.34
0.06
0.03
0.01
0.11
0.10
0.015
0.001
94.70
743.47
749.50
6.03
21.42
0.18
0.11
0.03
0.59
0.30
0.007
0.001
297.99
770.56
791.43
20.87
5.24
0.08
0.05
0.01
0.27
0.05
0.075
0.001
93.75
814.25
820.15
5.90
2.58
0.02
0.06
0.01
0.23
0.03
0.364
0.001
118.69
866.21
868.00
1.79
3.00
0.03
0.00
0.00
0.43
0.04
0.034
0.001
90.39
SANTA BARBARA NW EXTENSION SECTIONAL DRILLING (CON’T)
Hole No.
From (m)
To (m)
Length (m)
Ag
Au
Zn
Pb
Cu
Sn
Bi
Cd
Ag eq
g/t
g/t
%
%
%
%
%
%
g/t
DSB-15
23.76
29.83
6.07
22.14
0.06
0.00
0.08
0.01
0.10
0.003
0.001
93.29
55.33
58.30
2.97
2.00
0.05
0.01
0.02
1.34
0.02
0.001
0.001
196.03
173.61
178.12
4.52
21.35
0.14
0.62
0.20
0.02
0.03
0.002
0.001
86.78
293.70
304.23
10.53
9.98
0.10
0.21
0.34
0.08
0.09
0.022
0.121
112.43
314.20
322.74
8.54
4.13
0.04
0.59
0.33
0.05
0.06
0.008
0.009
89.94
435.66
437.19
1.53
0.50
0.01
0.11
0.00
0.00
0.14
0.001
0.001
88.97
461.30
462.80
1.50
2.00
0.01
0.13
0.01
0.01
0.14
0.004
0.001
90.73
474.55
476.05
1.50
24.00
0.06
0.03
0.03
0.20
0.15
0.031
0.001
153.19
480.55
486.53
5.98
7.52
0.02
0.12
0.01
0.11
0.10
0.011
0.001
90.20
532.48
533.97
1.49
34.00
0.04
0.01
0.01
0.13
0.11
0.034
0.001
126.43
582.19
583.74
1.55
1.00
0.01
2.03
0.00
0.01
0.03
0.001
0.001
113.31
710.97
730.62
19.65
14.67
0.13
0.27
0.00
0.17
0.19
0.070
0.001
186.75
DSB-13
50.50
66.67
4.48
18.11
0.01
0.01
0.08
0.20
0.02
0.001
0.005
57.64
111.90
124.02
12.12
4.67
0.01
0.71
0.08
0.01
0.02
0.001
0.004
54.94
161.71
199.29
37.58
5.66
0.07
0.29
0.09
0.02
0.03
0.001
0.004
48.53
208.19
211.20
3.01
16.02
0.27
0.48
0.03
0.09
0.03
0.001
0.005
90.12
221.66
230.67
9.01
21.45
0.54
0.38
0.07
0.02
0.14
0.009
0.005
171.55
272.71
274.22
1.51
27.00
0.30
0.06
0.06
0.04
0.07
0.019
0.005
105.33
287.75
292.25
4.50
5.67
0.03
1.18
0.31
0.02
0.06
0.002
0.003
108.69
308.70
311.64
2.94
3.00
0.02
0.37
0.25
0.01
0.04
0.001
0.002
52.61
320.57
361.18
39.13
3.48
0.08
0.24
0.07
0.02
0.04
0.002
0.005
51.89
405.83
410.50
4.67
8.63
0.10
0.73
0.03
0.05
0.03
0.017
0.005
78.28
432.52
434.06
1.54
5.00
2.42
0.18
0.02
0.06
0.01
0.506
0.005
312.23
525.10
526.62
1.52
3.00
0.11
0.03
0.01
0.05
0.11
0.044
0.005
93.10
537.14
540.23
3.09
6.94
0.02
0.01
0.01
0.08
0.08
0.029
0.005
74.07
601.95
610.88
8.93
7.07
0.03
0.02
0.01
0.11
0.06
0.047
0.005
71.71
695.03
696.50
1.47
12.00
0.10
0.07
0.02
0.26
0.11
0.13
0.01
147.95
DSB-12
157.18
172.03
14.85
45.47
0.08
0.12
0.11
0.02
0.04
0.003
0.003
89.84
209.63
221.60
11.97
28.82
0.04
0.03
0.10
0.03
0.05
0.009
0.004
71.87
301.26
311.90
10.64
54.31
0.02
0.01
0.00
0.04
0.02
0.007
0.005
78.19
332.64
343.05
10.41
92.32
0.05
0.02
0.01
0.06
0.04
0.005
0.004
130.28
377.74
379.19
1.45
9.00
0.10
0.01
0.01
0.06
0.07
0.002
0.005
66.35
428.94
430.58
1.64
3.00
0.01
0.02
0.01
0.02
0.09
0.001
0.005
61.28
453.15
466.73
13.58
11.53
0.03
0.03
0.01
0.08
0.07
0.007
0.005
68.58
487.76
505.80
18.04
10.19
0.04
0.22
0.03
0.15
0.13
0.035
0.005
129.54
510.30
517.79
7.49
1.79
0.08
0.08
0.01
0.04
0.05
0.014
0.005
48.24
523.80
529.68
5.88
3.55
0.32
0.03
0.01
0.10
0.10
0.012
0.005
105.18
561.32
562.84
1.52
3.00
0.03
0.04
0.01
0.12
0.12
0.008
0.005
97.29
568.86
574.84
5.98
3.77
0.02
0.06
0.01
0.08
0.07
0.042
0.005
65.41
586.83
588.40
1.57
3.00
0.01
0.03
0.00
0.12
0.11
0.017
0.005
90.61
594.44
618.51
24.07
10.18
0.07
0.05
0.01
0.12
0.10
0.128
0.005
116.73
639.64
641.15
1.51
5.00
0.01
0.00
0.01
0.13
0.09
0.008
0.005
80.70
660.57
663.58
3.01
5.01
0.17
0.26
0.01
0.23
0.02
0.060
0.005
82.79
669.60
672.58
2.98
5.01
0.14
0.11
0.01
0.20
0.07
0.060
0.005
102.57
686.16
690.63
4.47
4.97
0.36
0.07
0.01
0.15
0.03
0.039
0.005
81.16
717.52
738.57
21.05
7.80
0.11
0.39
0.03
0.21
0.14
0.109
0.005
164.01
753.50
771.49
17.99
1.81
0.06
0.06
0.03
0.21
0.03
0.18
0.01
91.66
Note: True width of the mineralization is not known at the present time, but based on the current understanding of the relationship between drill orientation/inclination and the mineralization within the breccia pipes and the host rocks such as sandstones and dacites. It is estimated that true width ranges between 70% and 90% of the down hole interval length but this will be confirmed by further drilling and geological modelling.
Chemical symbols: Ag= silver, Au = gold, Zn = zinc, Pb = lead, Cu = copper, Sn = tin, Bi = bismuth, Cd = cadmium and g Ag eq/t = grams silver equivalent per tonne. Quantities are given in percent (%) for Zn, Pb Cu, Sn, Bi and Cd and in grams per tonne (g/t) for Ag, Au and Ag eq.
Metal prices and conversion factors used for calculation of g Ag eq/t (grams Ag per grams x metal ratio) are as follows (Prices updated as of January 30, 2022, to more accurately reflect current metal prices):
Element
Price $US (per kg)
Ratio to Ag
Ag
$722.56
1.0000
Sn
$42.56
0.0589
Zn
$3.30
0.0046
Pb
$2.33
0.0032
Au
$57,604.00
79.7221
Cu
$9.68
0.0134
Bi
$12.76
0.0177
Cd
$5.50
0.0076
In calculating the intersections reported in this press release a sample cutoff of 30 g Ag eq/t was used with generally a maximum dilution of 3 continuous samples below cutoff included within a mineralized section unless more dilution is justified geologically.
The equivalent grade calculations are based on the stated metal prices and are provided for comparative purposes only, due to the polymetallic nature of the deposit. Metallurgical tests are in progress by Blue Coast Ltd. to establish levels of recovery for each element reported but currently the potential recovery for each element has not yet been established. While there is no assurance that all or any of the reported concentrations of metals will be recoverable, Bolivia has a long history of successfully mining and processing similar polymetallic deposits which is well documented in the landmark volume “Yacimientos Metaliferos de Bolivia” by Dr. Osvaldo R. Arce Burgoa, P.Geo.
Table 2: Summary of Diamond Drill Holes Completed with Assays Pending and Drill Holes in Progress at Iska Iska from February 23, 2022 press release.
Hole No.
Type
Collar Easting
Collar Northing
Elev
Azimuth
Angle
Hole Length m
Surface Drilling Northwest Extension Santa Barbara
DSB-14
S
205283.0
7656587.2
4175.0
225
-65
968.5
DSB-16
S
204973.1
7657053.8
4165.0
225
-65
862.0
DSB-17
S
7656765.4
205131.3
4173.0
225
-40
841.0
DSB-18
S
7656676.3
205207.1
4175.0
225
-40
890.4
DSB-19
S
7656676.3
205207.1
4175.0
225
-65
803.3
DSB-22
S
7657208.4
204799.4
4145.0
225
-40
258.4
DSB-23
S
205341.0
7656535.0
4177.0
225
-40
661.3
DSB-24
S
205341.0
7656535.0
4177.0
225
-65
343.4
DSB-25
S
205283.0
7656587.2
4175.0
225
-40
615.3
DSB-26
S
205044.5
7656982.6
4150.0
225
-40
815.4
DSB-27
S
205044.5
7656982.6
4150.0
225
-65
800.4
Subtotal
7,859.4
Underground Drilling Santa Barbara Adit
DSBU-3
UG
205285.2
7656074.8
4165.0
270
-20
443.5
DSBU-4
UG
205285.2
7656074.8
4165.0
180
-20
570.0
DSBU-5
UG
205285.2
7656074.8
4165.0
0
-40
491.7
DSBU-6
UG
205285.2
7656074.8
4165.0
0
-65
253.5
DSBU-7
UG
205284.5
7656080.0
4167.1
235
-50
800.9
Subtotal
2,559.6
DSBU-8
UG
205284.5
7656080.0
4167.1
200
-50
In progress
Underground Metallurgical Drill Holes Santa Barbara
METSBU-01
UG
205285.2
7656074.8
4165.0
10
-35
351.0
Subtotal
351.0
Surface Drilling South Extension Santa Barbara
DSBS-01
S
205300.0
7655563.0
4204.0
30°
-30
In progress
Porco Target Area – Surface Drill Program
DPC-04
S
205457.2
7655110.9
4175.0
0
-60
371.4
DPC-05
S
205457.2
7655110.9
4175.0
90
-60
407.5
DPC-06
S
205457.2
7655110.9
4175.0
243
-60
716.4
DPC-08
S
205456.2
7655113.4
4175.9
243
-60
800.4
Subtotal
2,295.7
DPC-07
S
205090.0
7655343.7
4310.0
235
-65
In progress
TOTAL
13,065.7
S = Surface UG=Underground; collar coordinates in metres; azimuth and dip in degrees. Total drilling completed since the start of the program on September 13, 2020 to December 17, 2021 is 40,468 m in 73 holes (26 underground holes and 47 surface holes). From re-start of drilling on January 17, 2022, an additional 4,649m has been completed bringing the overall total to 45,117m in 80 drill holes (27 underground drill holes and 53 surface drill holes) including 3 holes in progress.
Dr. Osvaldo Arce, P. Geo., General Manager of Minera Tupiza, and a Qualified Person in the context of NI 43-101, has reviewed and approved the technical content of this news release. Dr. Bill Pearson, P.Geo., Executive Vice President Exploration Eloro, and who has more than 45 years of worldwide mining exploration experience including extensive work in South America, manages the overall technical program working closely with Dr. Osvaldo Arce, P.Geo., Manager of Minera Tupiza. Dr. Quinton Hennigh, P.Geo., Senior Technical Advisor to Eloro and Independent Technical Advisor, Mr. Charley Murahwi P. Geo., FAusIMM of Micon International Limited are regularly consulted on technical aspects of the project.
Eloro is utilizing both ALS and AHK for drill core analysis, both of whom are major international accredited laboratories. Drill samples sent to ALS are prepared in ALS Bolivia Ltda’s preparation facility in Oruro, Bolivia with pulps sent to the main ALS Global laboratory in Lima for analysis. More recently Eloro has had ALS send pulps to their laboratory at Galway in Ireland. Eloro employs an industry standard QA/QC program with standards, blanks and duplicates inserted into each batch of samples analyzed with selected check samples sent to a separate accredited laboratory.
Drill core samples sent to AHK Laboratories are sent to their preparation laboratory in Oruro with pulps sent to the AHK laboratory in Lima, Peru. Check samples between ALS and AHK are regularly done as a QA/QC check. AHK is following the same analytical protocols used as with ALS and with the same QA/QC protocols. Turnaround time, which has been impacted by the recent surge in Covid-19, has been improving following the Christmas break and it is hoped that most of the sample backlog will be cleared in the next 4-6 weeks.
About Iska Iska
Iska Iska silver-tin polymetallic project is a road accessible, royalty-free property, wholly controlled by the Title Holder, Empresa Minera Villegas S.R.L. and is located 48 km north of Tupiza city, in the Sud Chichas Province of the Department of Potosi in southern Bolivia. Eloro has an option to earn a 99% interest in Iska Iska.
Iska Iska is a major silver-tin polymetallic porphyry-epithermal complex associated with a Miocene possibly collapsed/resurgent caldera, emplaced on Ordovician age rocks with major breccia pipes, dacitic domes and hydrothermal breccias. The caldera is 1.6km by 1.8km in dimension with a vertical extent of at least 1km. Mineralization age is similar to Cerro Rico de Potosí and other major deposits such as San Vicente, Chorolque, Tasna and Tatasi located in the same geological trend.
Eloro began underground diamond drilling from the Huayra Kasa underground workings at Iska Iska on September 13, 2020. On November 18, 2020, Eloro announced the discovery of a significant breccia pipe with extensive silver polymetallic mineralization just east of the Huayra Kasa underground workings and a high-grade gold-bismuth zone in the underground workings. On November 24, 2020, Eloro announced the discovery of the SBBP approximately 150m southwest of the Huayra Kasa underground workings.
Subsequently, on January 26, 2021, Eloro announced significant results from the first drilling at the SBBP including the discovery hole DHK-15 which returned 129.60 g Ag eq/t over 257.5m (29.53g Ag/t, 0.078g Au/t, 1.45%Zn, 0.59%Pb, 0.080%Cu, 0.056%Sn, 0.0022%In and 0.0064% Bi from 0.0m to 257.5m. Subsequent drilling has confirmed significant values of Ag-Sn polymetallic mineralization in the SBBP and the adjacent CBP. A substantive mineralized envelope which is open along strike and down-dip extends around both major breccia pipes. Continuous channel sampling of the Santa Barbara Adit located to the east of SBBP returned 442 g Ag eq/t (164.96 g Ag/t, 0.46%Sn, 3.46% Pb and 0.14% Cu) over 166m including 1,092 g Ag eq/t (446 g Ag/t, 9.03% Pb and 1.16% Sn) over 56.19m. The west end of the adit intersects the end of the SBBP.
Since the initial discovery hole, Eloro has released a number of significant drill results in the SBBP and the surrounding mineralized envelope which along with geophysical data has defined a target zone 1400m along strike, 500m wide and that extends to a depth of 600m. This zone is open along strike to the northwest and southeast as well as to the southwest. The Company’s nearer term objective is to outline a maiden NI 43-101 compliant mineral resource within this large target area. This work is advancing well with the mineral resource targeted to be completed in Q2 2022. Exploration drilling is also planned on other major targets in the Iska Iska Caldera Complex including the Porco and Mina 2 areas.
About Eloro Resources Ltd.
Eloro is an exploration and mine development company with a portfolio of gold and base-metal properties in Bolivia, Peru and Quebec. Eloro has an option to acquire a 99% interest in the highly prospective Iska Iska Property, which can be classified as a polymetallic epithermal-porphyry complex, a significant mineral deposit type in the Potosi Department, in southern Bolivia. Eloro commissioned a NI 43-101 Technical Report on Iska Iska, which was completed by Micon International Limited and is available on Eloro’s website and under its filings on SEDAR. Iska Iska is a road-accessible, royalty-free property. Eloro also owns an 82% interest in the La Victoria Gold/Silver Project, located in the North-Central Mineral Belt of Peru some 50 km south of Barrick’s Lagunas Norte Gold Mine and Pan American Silver’s La Arena Gold Mine. La Victoria consists of eight mining concessions and eight mining claims encompassing approximately 89 square kilometres. La Victoria has good infrastructure with access to road, water and electricity and is located at an altitude that ranges from 3,150 m to 4,400 m above sea level.
For further information please contact either Thomas G. Larsen, Chairman and CEO or Jorge Estepa, Vice-President at (416) 868-9168.
Information in this news release may contain forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company’s plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company. There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
Eloro Resources Ltd.
Figure 1
Geology of the Iska Iska Caldera Complex showing locations of Major Breccia Pipe targets, the Santa Barbara Resource Definition Target Zone and diamond drill holes completed and planned.
Figure 2
Preliminary Geological Cross Section NW Extension Target Looking NW – Drill Holes DSB-20 (results this release) and DSB-17 (results pending).
Includes higher-grade sections of 507.64 g Ag eq/t (119.36 g Ag/t, 0.14 g Au/t, 0.57 %Pb and 0.52 %Sn) over 49.55m from 0.0 to 49.55m and 196.67 g Ag eq/t (66.93 g Ag/t, 1.03% Zn, 0.67% Pb and 0.08% Sn) over 77.77m in underground drill hole METSBUG-02.
Hole DSB-20, which is in approximately the centre of the NW Extension target area, intersected 22 reportable intersections with a best result of 129.42 g Ag eq/t (21.79 g Ag/t, 0.27% Zn, 0.36% Pb and 0.12% Sn) over 73.65m including a higher-grade section of 204.03 g Ag eq/t (27.54 g Ag/t, 0.40% Zn, 0.55% Pb and 0.21% Sn) over 28.57m.
TORONTO, Feb. 23, 2022 (GLOBE NEWSWIRE) — Eloro Resources Ltd. (TSX-V: ELO; OTCQX: ELRRF; FSE: P2QM) (“Eloro”, or the “Company”) is pleased to announce assay results from six (6) additional diamond drill holes from its on-going drilling program at the Iska Iska silver-tin polymetallic project in the Potosi Department, southern Bolivia. Hole METSBUG-02 is an underground hole drilled northeast from the Santa Barbara adit for metallurgical purposes and to complete fill-in drilling. The remaining five (5) holes tested the NW extension in the Santa Barbara Mineral Resource Target Area (DSB-12, -13, -15, -20 and -21) on a series of NE-SW sections as shown in Figure 1.
As previously announced (see Eloro’s press release dated January 18, 2022) drilling recommenced on January 17, 2022, with two surface drill rigs and one underground rig. Since the restart, the Company has completed an additional 4,649m of drilling, for an overall total of 45,117m in 80 drill holes, including three holes in progress as shown in Figure 1. Table 1 lists significant assay results. Prices used for calculating Ag equivalent grades are as outlined in Eloro’s February 1, 2022, press release. Table 2 summarizes drill holes with assays pending. Highlights are as follows:
Underground Metallurgical Hole, Santa Barbara Mineral Resource Target Area
Underground hole METSBUG-02, collared in the Santa Barbara adit and drilled at an azimuth of 40 degrees at -10 degrees dip, intersected significant mineralization (Figure 1 and Table 1) over the full length of the hole:
172.43 g Ag eq/t (40.16 g Ag/t, 0.51% Zn, 0.41% Pb and 0.13% Sn) over 303.05m from 0.00 to 303.05 m including higher-grade sections of 507.64 g Ag eq/t (119.36 g Ag/t, 0.14 g Au/t, 0.57 %Pb and 0.52 %Sn) over 49.55m from 0.0 to 49.55m and 196.67 g Ag eq/t (66.93 g Ag/t, 1.03% Zn, 0.67% Pb and 0.08% Sn) over 77.77m from 180.95m to 258.72m.
This hole was designed to intersect midway across the intersection in Hole DHK-18 which returned 129.65 g Ag eq/t over 300.75m (see press release July 28, 2021; grade is 172.18 g Ag eq/t with updated metal prices) in the mineralized envelope to the east of the Santa Barbara Breccia Pipe.
Sectional Drill Holes NW Extension Santa Barbara Mineral Resource Target Area
Significant results have been returned from the five (5) initial sectional drill holes testing the NW Extension of the Santa Barbara mineralized trend. This area is marked by a prominent magnetic anomaly and is underlain by several dacitic domes, possibly related to a secondary caldera. An additional 11 holes totaling 7,859m have been completed to provide coverage on 100m spaced sections over much of the NW Extension target area as shown in Figure 1. Assay results on these holes are pending. Figure 2 is a section along hole DSB-20. Highlights are as follows:
Hole DSB-20, which is in approximately the centre of the NW Extension target area, intersected 22 reportable intersections with a best result of 129.42 g Ag eq/t (21.79 g Ag/t, 0.27% Zn, 0.36% Pb and 0.12% Sn) over 73.65m from 247.56m to 321.21m including a higher-grade section of 204.03 g Ag eq/t (27.54 g Ag/t, 0.40% Zn, 0.55% Pb and 0.21% Sn) over 28.57m from 267.08m to 295.65m.
Hole DSB-21, on the northwesternmost section, intersected 14 reportable intersections including a high-grade Cu zone grading 152.04 g Ag eq/t (9.48 g Ag/t and 1.02% Cu) over 25.27m from 58.85m to 84.12m and 114.77 g Ag eq/t (40.85 g Ag/t, 0.09 g Au/t, 0.69% Zn and 0.18% Pb) over 16.28m from 163.98m to 180.28m.
Hole DSB-15, 100m southeast of Hole DSB-21, intersected 12 reportable intersections including 112.43 g Ag eq/t (9.98 g Ag/t, 0.10 g Au/t, 0.21% Zn, 0.34% Pb, 0.09% Sn and 0.12% Cd) over 10.53m from 293.70m to 304.23m and 186.75 g Ag eq/t (14.67 g Ag/t, 0.13 g Au/t, 0.27% Zn, 0.17% Cu and 0.19% Sn) over 19.65m from 710.97m to 730.62m.
Hole DSB-12, collared 200m southeast of hole DSB-15 and 100m northwest of hole DSB-20, intersected 20 reportable mineralized intersections of which nine ranged from 10.41m to 24.07m long. Best results were 130.28 g Ag eq/t (92.32 g Ag/t, 0.06% Cu) over 10.41m from 332.64 to 311.90, 129.54 g Ag eq/t (10.19 g Ag/t, 0.22 % Zn, 0.15% Cu, 0.13% Sn) over 18.04m from 487.76m to 505.80m, 116.73 g Ag eq/t (10.18 g Ag/t, 0.12% Cu, 0.10 % Sn and 0.13% Bi) over 24.07m from 594.44m to 618.51m and 164.01 g Ag eq/t (7.80 g Ag/t, 0.11 g Au/t, 0.39% Zn, 0.21% Cu, 0.11% Bi) over 21.05m from 753.50m to 771.49m.
Hole DSB-13, drilled on the same section but shallower than hole DSB-12, intersected 15 reportable mineralized intersections of which the best results were 48.53 g Ag eq/t (5.66 g Ag/t and 0.29% Zn) over 37.58m from 161.71m to 199.29m, 171.55 g Ag eq/t over 9.01m (21.45 g Ag/t, 0.54 g Au/t, 0.38% Zn, 0.14% Sn) from 221.66m to 230.67m, 51.89 g Ag eq/t (3.48 g Ag/t and 0.24% Zn) over 39.13m from 320.57m to 361.18m and 71.71 g Ag eq/t over 8.93m (7.07 g Ag/t, 0.11% Cu and 0.06% Sn) from 601.95m to 610.88m.
Tom Larsen, CEO of Eloro, commented: “This new underground hole is the longest and highest-grade intersection obtained thus far in our diamond drill program. Results from the step-out holes on the NW extension are also very encouraging. Turnaround at both the ALS and AHK laboratories continues to improve so we anticipate being able to have a more regular release of results going forward. Drilling productivity continues to be very high with more than 4,600m completed by the three drills since our restart last month. We will shortly complete our underground drilling and will exchange this drill for a high capacity surface rig which will further increase our production.”
Dr. Bill Pearson, P.Geo., Eloro’s Executive Vice President Exploration, added: “The 100m-spaced sectional drilling has been completed on the NW Extension, however it is evident that much further drilling will be required to fully evaluate this exciting target area. Underground drilling is continuing from the Santa Barbara adit to test the major magnetic anomaly to the southwest. The first of a series of surface holes testing the southern Santa Barbara target area is in progress, with the aim of further expanding the high-grade mineralization already identified in this area. Hole DPC-07 in the Porco area is testing a major magnetic anomaly, while additional drill holes are planned to further test the Porco Breccia Pipe deeper. Hole DM2-01, to be drilled in the Mina 2 area in the southeast part of the property, will test for a potential tin porphyry at depth. Channel sampling and geological mapping are in progress in the Mina 2 workings.”
Table 1: Significant Results, Diamond Drilling, Santa Barbara Resource Definition Target Area as at February 23, 2022.
SANTA BARBARA RESOURCE DEFINITION TARGET ZONE
UNDERGROUND DRILL HOLE – METALLURGICAL HOLE
Hole No.
From (m)
To (m)
Length (m)
Ag
Au
Zn
Pb
Cu
Sn
Bi
Cd
Ag eq
g/t
g/t
%
%
%
%
%
%
g/t
METSBUG-02
0.00
303.05
303.05
40.16
0.06
0.51
0.41
0.09
0.13
0.006
0.004
172.43
Incl.
0.00
49.55
49.55
119.36
0.14
0.06
0.57
0.38
0.52
0.010
0.001
507.64
Incl.
180.95
258.72
77.77
66.93
0.04
1.03
0.67
0.06
0.08
0.013
0.011
196.67
SANTA BARBARA NW EXTENSION SECTIONAL DRILLING
Hole No.
From (m)
To (m)
Length (m)
Ag
Au
Zn
Pb
Cu
Sn
Bi
Cd
Ag eq
g/t
g/t
%
%
%
%
%
%
g/t
DSB-21
21.15
22.61
1.46
8.00
0.23
0.00
0.07
0.02
0.06
0.022
0.001
68.81
58.85
84.12
25.27
9.48
0.02
0.01
0.05
1.02
0.00
0.001
0.001
152.04
163.98
180.26
16.28
40.85
0.09
0.69
0.18
0.04
0.03
0.019
0.012
114.77
228.21
243.27
15.06
24.11
0.06
0.50
0.10
0.04
0.04
0.002
0.002
87.05
255.28
261.26
5.98
27.07
0.06
0.61
0.14
0.02
0.03
0.001
0.001
83.85
268.78
270.28
1.50
32.00
0.08
0.30
0.03
0.15
0.15
0.018
0.001
165.47
309.61
315.61
6.00
15.70
0.02
0.68
0.44
0.01
0.01
0.001
0.002
67.35
453.86
455.38
1.52
25.00
0.05
0.02
0.03
0.06
0.05
0.025
0.001
74.03
513.92
515.42
1.50
68.00
0.03
0.03
0.00
0.03
0.01
0.002
0.001
83.83
521.39
525.88
4.49
24.09
0.06
0.06
0.01
0.05
0.04
0.005
0.001
64.40
578.55
581.40
2.85
1.51
0.01
2.61
0.00
0.01
0.00
0.001
0.001
125.26
638.51
640.00
1.49
59.00
0.03
0.15
0.01
0.31
0.28
0.013
0.001
277.24
649.04
656.55
7.51
20.09
0.02
0.64
0.01
0.12
0.11
0.008
0.001
135.84
665.75
667.25
1.50
44.00
0.14
0.03
0.02
0.29
0.28
0.547
0.001
354.97
DSB-20
46.66
51.20
4.54
9.69
0.01
0.01
0.19
1.21
0.00
0.001
0.001
180.58
82.61
85.56
2.95
5.54
0.02
0.37
0.46
0.01
0.01
0.004
0.073
51.71
118.70
123.22
4.52
8.76
0.03
2.14
0.42
0.01
0.06
0.002
0.060
166.00
150.28
162.26
11.98
17.68
0.03
0.62
0.49
0.01
0.05
0.002
0.026
94.64
188.89
221.88
32.99
5.29
0.02
0.35
0.14
0.01
0.10
0.002
0.008
85.30
233.97
235.50
1.53
17.00
0.02
0.59
0.32
0.01
0.06
0.002
0.002
92.39
247.56
321.21
73.65
21.79
0.07
0.27
0.36
0.01
0.12
0.028
0.001
129.42
Incl.
267.08
295.65
28.57
27.54
0.08
0.40
0.55
0.02
0.21
0.037
0.001
204.03
352.73
357.24
4.51
4.69
0.01
0.54
0.25
0.01
0.02
0.001
0.001
51.73
360.23
361.73
1.50
4.00
0.01
1.38
0.01
0.01
0.01
0.001
0.001
76.68
399.15
402.09
2.94
3.02
0.03
0.34
0.17
0.01
0.05
0.001
0.001
59.64
408.26
409.83
1.57
4.00
0.01
0.63
0.02
0.01
0.05
0.001
0.001
64.50
426.27
427.72
1.45
4.00
0.02
0.01
0.01
0.01
0.12
0.003
0.001
80.50
499.10
500.53
1.43
2.00
0.01
0.02
0.01
0.03
0.08
0.001
0.001
55.86
518.38
536.18
17.80
12.01
0.06
0.37
0.08
0.03
0.04
0.045
0.001
71.11
552.63
568.40
15.77
16.71
0.15
0.08
0.03
0.10
0.10
0.059
0.001
116.90
591.30
598.70
7.40
9.41
0.21
0.05
0.02
0.05
0.06
0.014
0.001
73.18
697.09
698.50
1.41
6.00
0.02
0.00
0.00
0.10
0.10
0.007
0.001
82.51
719.40
723.90
4.50
9.34
0.06
0.03
0.01
0.11
0.10
0.015
0.001
94.70
743.47
749.50
6.03
21.42
0.18
0.11
0.03
0.59
0.30
0.007
0.001
297.99
770.56
791.43
20.87
5.24
0.08
0.05
0.01
0.27
0.05
0.075
0.001
93.75
814.25
820.15
5.90
2.58
0.02
0.06
0.01
0.23
0.03
0.364
0.001
118.69
866.21
868.00
1.79
3.00
0.03
0.00
0.00
0.43
0.04
0.034
0.001
90.39
SANTA BARBARA NW EXTENSION SECTIONAL DRILLING (CON’T)
Hole No.
From (m)
To (m)
Length (m)
Ag
Au
Zn
Pb
Cu
Sn
Bi
Cd
Ag eq
g/t
g/t
%
%
%
%
%
%
g/t
DSB-15
23.76
29.83
6.07
22.14
0.06
0.00
0.08
0.01
0.10
0.003
0.001
93.29
55.33
58.30
2.97
2.00
0.05
0.01
0.02
1.34
0.02
0.001
0.001
196.03
173.61
178.12
4.52
21.35
0.14
0.62
0.20
0.02
0.03
0.002
0.001
86.78
293.70
304.23
10.53
9.98
0.10
0.21
0.34
0.08
0.09
0.022
0.121
112.43
314.20
322.74
8.54
4.13
0.04
0.59
0.33
0.05
0.06
0.008
0.009
89.94
435.66
437.19
1.53
0.50
0.01
0.11
0.00
0.00
0.14
0.001
0.001
88.97
461.30
462.80
1.50
2.00
0.01
0.13
0.01
0.01
0.14
0.004
0.001
90.73
474.55
476.05
1.50
24.00
0.06
0.03
0.03
0.20
0.15
0.031
0.001
153.19
480.55
486.53
5.98
7.52
0.02
0.12
0.01
0.11
0.10
0.011
0.001
90.20
532.48
533.97
1.49
34.00
0.04
0.01
0.01
0.13
0.11
0.034
0.001
126.43
582.19
583.74
1.55
1.00
0.01
2.03
0.00
0.01
0.03
0.001
0.001
113.31
710.97
730.62
19.65
14.67
0.13
0.27
0.00
0.17
0.19
0.070
0.001
186.75
DSB-13
50.50
66.67
4.48
18.11
0.01
0.01
0.08
0.20
0.02
0.001
0.005
57.64
111.90
124.02
12.12
4.67
0.01
0.71
0.08
0.01
0.02
0.001
0.004
54.94
161.71
199.29
37.58
5.66
0.07
0.29
0.09
0.02
0.03
0.001
0.004
48.53
208.19
211.20
3.01
16.02
0.27
0.48
0.03
0.09
0.03
0.001
0.005
90.12
221.66
230.67
9.01
21.45
0.54
0.38
0.07
0.02
0.14
0.009
0.005
171.55
272.71
274.22
1.51
27.00
0.30
0.06
0.06
0.04
0.07
0.019
0.005
105.33
287.75
292.25
4.50
5.67
0.03
1.18
0.31
0.02
0.06
0.002
0.003
108.69
308.70
311.64
2.94
3.00
0.02
0.37
0.25
0.01
0.04
0.001
0.002
52.61
320.57
361.18
39.13
3.48
0.08
0.24
0.07
0.02
0.04
0.002
0.005
51.89
405.83
410.50
4.67
8.63
0.10
0.73
0.03
0.05
0.03
0.017
0.005
78.28
432.52
434.06
1.54
5.00
2.42
0.18
0.02
0.06
0.01
0.506
0.005
312.23
525.10
526.62
1.52
3.00
0.11
0.03
0.01
0.05
0.11
0.044
0.005
93.10
537.14
540.23
3.09
6.94
0.02
0.01
0.01
0.08
0.08
0.029
0.005
74.07
601.95
610.88
8.93
7.07
0.03
0.02
0.01
0.11
0.06
0.047
0.005
71.71
695.03
696.50
1.47
12.00
0.10
0.07
0.02
0.26
0.11
0.13
0.01
147.95
DSB-12
157.18
172.03
14.85
45.47
0.08
0.12
0.11
0.02
0.04
0.003
0.003
89.84
209.63
221.60
11.97
28.82
0.04
0.03
0.10
0.03
0.05
0.009
0.004
71.87
301.26
311.90
10.64
54.31
0.02
0.01
0.00
0.04
0.02
0.007
0.005
78.19
332.64
343.05
10.41
92.32
0.05
0.02
0.01
0.06
0.04
0.005
0.004
130.28
377.74
379.19
1.45
9.00
0.10
0.01
0.01
0.06
0.07
0.002
0.005
66.35
428.94
430.58
1.64
3.00
0.01
0.02
0.01
0.02
0.09
0.001
0.005
61.28
453.15
466.73
13.58
11.53
0.03
0.03
0.01
0.08
0.07
0.007
0.005
68.58
487.76
505.80
18.04
10.19
0.04
0.22
0.03
0.15
0.13
0.035
0.005
129.54
510.30
517.79
7.49
1.79
0.08
0.08
0.01
0.04
0.05
0.014
0.005
48.24
523.80
529.68
5.88
3.55
0.32
0.03
0.01
0.10
0.10
0.012
0.005
105.18
561.32
562.84
1.52
3.00
0.03
0.04
0.01
0.12
0.12
0.008
0.005
97.29
568.86
574.84
5.98
3.77
0.02
0.06
0.01
0.08
0.07
0.042
0.005
65.41
586.83
588.40
1.57
3.00
0.01
0.03
0.00
0.12
0.11
0.017
0.005
90.61
594.44
618.51
24.07
10.18
0.07
0.05
0.01
0.12
0.10
0.128
0.005
116.73
639.64
641.15
1.51
5.00
0.01
0.00
0.01
0.13
0.09
0.008
0.005
80.70
660.57
663.58
3.01
5.01
0.17
0.26
0.01
0.23
0.02
0.060
0.005
82.79
669.60
672.58
2.98
5.01
0.14
0.11
0.01
0.20
0.07
0.060
0.005
102.57
686.16
690.63
4.47
4.97
0.36
0.07
0.01
0.15
0.03
0.039
0.005
81.16
717.52
738.57
21.05
7.80
0.11
0.39
0.03
0.21
0.14
0.109
0.005
164.01
753.50
771.49
17.99
1.81
0.06
0.06
0.03
0.21
0.03
0.18
0.01
91.66
Note: True width of the mineralization is not known at the present time, but based on the current understanding of the relationship between drill orientation/inclination and the mineralization within the breccia pipes and the host rocks such as sandstones and dacites. It is estimated that true width ranges between 70% and 90% of the down hole interval length but this will be confirmed by further drilling and geological modelling.
Chemical symbols: Ag= silver, Au = gold, Zn = zinc, Pb = lead, Cu = copper, Sn = tin, Bi = bismuth, Cd = cadmium and g Ag eq/t = grams silver equivalent per tonne. Quantities are given in percent (%) for Zn, Pb Cu, Sn, Bi and Cd and in grams per tonne (g/t) for Ag, Au and Ag eq.
Metal prices and conversion factors used for calculation of g Ag eq/t (grams Ag per grams x metal ratio) are as follows (Prices updated as of January 30, 2022, to more accurately reflect current metal prices):
Element
Price $US (per kg)
Ratio to Ag
Ag
$722.56
1.0000
Sn
$42.56
0.0589
Zn
$3.30
0.0046
Pb
$2.33
0.0032
Au
$57,604.00
79.7221
Cu
$9.68
0.0134
Bi
$12.76
0.0177
Cd
$5.50
0.0076
In calculating the intersections reported in this press release a sample cutoff of 30 g Ag eq/t was used with generally a maximum dilution of 3 continuous samples below cutoff included within a mineralized section unless more dilution is justified geologically.
The equivalent grade calculations are based on the stated metal prices and are provided for comparative purposes only, due to the polymetallic nature of the deposit. Metallurgical tests are in progress by Blue Coast Ltd. to establish levels of recovery for each element reported but currently the potential recovery for each element has not yet been established. While there is no assurance that all or any of the reported concentrations of metals will be recoverable, Bolivia has a long history of successfully mining and processing similar polymetallic deposits which is well documented in the landmark volume “Yacimientos Metaliferos de Bolivia” by Dr. Osvaldo R. Arce Burgoa, P.Geo.
Table 2: Summary of Diamond Drill Holes Completed with Assays Pending and Drill Holes in Progress at Iska Iska from February 23, 2022 press release.
Hole No.
Type
Collar Easting
Collar Northing
Elev
Azimuth
Angle
Hole Length m
Surface Drilling Northwest Extension Santa Barbara
DSB-14
S
205283.0
7656587.2
4175.0
225
-65
968.5
DSB-16
S
204973.1
7657053.8
4165.0
225
-65
862.0
DSB-17
S
7656765.4
205131.3
4173.0
225
-40
841.0
DSB-18
S
7656676.3
205207.1
4175.0
225
-40
890.4
DSB-19
S
7656676.3
205207.1
4175.0
225
-65
803.3
DSB-22
S
7657208.4
204799.4
4145.0
225
-40
258.4
DSB-23
S
205341.0
7656535.0
4177.0
225
-40
661.3
DSB-24
S
205341.0
7656535.0
4177.0
225
-65
343.4
DSB-25
S
205283.0
7656587.2
4175.0
225
-40
615.3
DSB-26
S
205044.5
7656982.6
4150.0
225
-40
815.4
DSB-27
S
205044.5
7656982.6
4150.0
225
-65
800.4
Subtotal
7,859.4
Underground Drilling Santa Barbara Adit
DSBU-3
UG
205285.2
7656074.8
4165.0
270
-20
443.5
DSBU-4
UG
205285.2
7656074.8
4165.0
180
-20
570.0
DSBU-5
UG
205285.2
7656074.8
4165.0
0
-40
491.7
DSBU-6
UG
205285.2
7656074.8
4165.0
0
-65
253.5
DSBU-7
UG
205284.5
7656080.0
4167.1
235
-50
800.9
Subtotal
2,559.6
DSBU-8
UG
205284.5
7656080.0
4167.1
200
-50
In progress
Underground Metallurgical Drill Holes Santa Barbara
METSBU-01
UG
205285.2
7656074.8
4165.0
10
-35
351.0
Subtotal
351.0
Surface Drilling South Extension Santa Barbara
DSBS-01
S
205300.0
7655563.0
4204.0
30°
-30
In progress
Porco Target Area – Surface Drill Program
DPC-04
S
205457.2
7655110.9
4175.0
0
-60
371.4
DPC-05
S
205457.2
7655110.9
4175.0
90
-60
407.5
DPC-06
S
205457.2
7655110.9
4175.0
243
-60
716.4
DPC-08
S
205456.2
7655113.4
4175.9
243
-60
800.4
Subtotal
2,295.7
DPC-07
S
205090.0
7655343.7
4310.0
235
-65
In progress
TOTAL
13,065.7
S = Surface UG=Underground; collar coordinates in metres; azimuth and dip in degrees. Total drilling completed since the start of the program on September 13, 2020 to December 17, 2021 is 40,468 m in 73 holes (26 underground holes and 47 surface holes). From re-start of drilling on January 17, 2022, an additional 4,649m has been completed bringing the overall total to 45,117m in 80 drill holes (27 underground drill holes and 53 surface drill holes) including 3 holes in progress.
Dr. Osvaldo Arce, P. Geo., General Manager of Minera Tupiza, and a Qualified Person in the context of NI 43-101, has reviewed and approved the technical content of this news release. Dr. Bill Pearson, P.Geo., Executive Vice President Exploration Eloro, and who has more than 45 years of worldwide mining exploration experience including extensive work in South America, manages the overall technical program working closely with Dr. Osvaldo Arce, P.Geo., Manager of Minera Tupiza. Dr. Quinton Hennigh, P.Geo., Senior Technical Advisor to Eloro and Independent Technical Advisor, Mr. Charley Murahwi P. Geo., FAusIMM of Micon International Limited are regularly consulted on technical aspects of the project.
Eloro is utilizing both ALS and AHK for drill core analysis, both of whom are major international accredited laboratories. Drill samples sent to ALS are prepared in ALS Bolivia Ltda’s preparation facility in Oruro, Bolivia with pulps sent to the main ALS Global laboratory in Lima for analysis. More recently Eloro has had ALS send pulps to their laboratory at Galway in Ireland. Eloro employs an industry standard QA/QC program with standards, blanks and duplicates inserted into each batch of samples analyzed with selected check samples sent to a separate accredited laboratory.
Drill core samples sent to AHK Laboratories are sent to their preparation laboratory in Oruro with pulps sent to the AHK laboratory in Lima, Peru. Check samples between ALS and AHK are regularly done as a QA/QC check. AHK is following the same analytical protocols used as with ALS and with the same QA/QC protocols. Turnaround time, which has been impacted by the recent surge in Covid-19, has been improving following the Christmas break and it is hoped that most of the sample backlog will be cleared in the next 4-6 weeks.
About Iska Iska
Iska Iska silver-tin polymetallic project is a road accessible, royalty-free property, wholly controlled by the Title Holder, Empresa Minera Villegas S.R.L. and is located 48 km north of Tupiza city, in the Sud Chichas Province of the Department of Potosi in southern Bolivia. Eloro has an option to earn a 99% interest in Iska Iska.
Iska Iska is a major silver-tin polymetallic porphyry-epithermal complex associated with a Miocene possibly collapsed/resurgent caldera, emplaced on Ordovician age rocks with major breccia pipes, dacitic domes and hydrothermal breccias. The caldera is 1.6km by 1.8km in dimension with a vertical extent of at least 1km. Mineralization age is similar to Cerro Rico de Potosí and other major deposits such as San Vicente, Chorolque, Tasna and Tatasi located in the same geological trend.
Eloro began underground diamond drilling from the Huayra Kasa underground workings at Iska Iska on September 13, 2020. On November 18, 2020, Eloro announced the discovery of a significant breccia pipe with extensive silver polymetallic mineralization just east of the Huayra Kasa underground workings and a high-grade gold-bismuth zone in the underground workings. On November 24, 2020, Eloro announced the discovery of the SBBP approximately 150m southwest of the Huayra Kasa underground workings.
Subsequently, on January 26, 2021, Eloro announced significant results from the first drilling at the SBBP including the discovery hole DHK-15 which returned 129.60 g Ag eq/t over 257.5m (29.53g Ag/t, 0.078g Au/t, 1.45%Zn, 0.59%Pb, 0.080%Cu, 0.056%Sn, 0.0022%In and 0.0064% Bi from 0.0m to 257.5m. Subsequent drilling has confirmed significant values of Ag-Sn polymetallic mineralization in the SBBP and the adjacent CBP. A substantive mineralized envelope which is open along strike and down-dip extends around both major breccia pipes. Continuous channel sampling of the Santa Barbara Adit located to the east of SBBP returned 442 g Ag eq/t (164.96 g Ag/t, 0.46%Sn, 3.46% Pb and 0.14% Cu) over 166m including 1,092 g Ag eq/t (446 g Ag/t, 9.03% Pb and 1.16% Sn) over 56.19m. The west end of the adit intersects the end of the SBBP.
Since the initial discovery hole, Eloro has released a number of significant drill results in the SBBP and the surrounding mineralized envelope which along with geophysical data has defined a target zone 1400m along strike, 500m wide and that extends to a depth of 600m. This zone is open along strike to the northwest and southeast as well as to the southwest. The Company’s nearer term objective is to outline a maiden NI 43-101 compliant mineral resource within this large target area. This work is advancing well with the mineral resource targeted to be completed in Q2 2022. Exploration drilling is also planned on other major targets in the Iska Iska Caldera Complex including the Porco and Mina 2 areas.
About Eloro Resources Ltd.
Eloro is an exploration and mine development company with a portfolio of gold and base-metal properties in Bolivia, Peru and Quebec. Eloro has an option to acquire a 99% interest in the highly prospective Iska Iska Property, which can be classified as a polymetallic epithermal-porphyry complex, a significant mineral deposit type in the Potosi Department, in southern Bolivia. Eloro commissioned a NI 43-101 Technical Report on Iska Iska, which was completed by Micon International Limited and is available on Eloro’s website and under its filings on SEDAR. Iska Iska is a road-accessible, royalty-free property. Eloro also owns an 82% interest in the La Victoria Gold/Silver Project, located in the North-Central Mineral Belt of Peru some 50 km south of Barrick’s Lagunas Norte Gold Mine and Pan American Silver’s La Arena Gold Mine. La Victoria consists of eight mining concessions and eight mining claims encompassing approximately 89 square kilometres. La Victoria has good infrastructure with access to road, water and electricity and is located at an altitude that ranges from 3,150 m to 4,400 m above sea level.
For further information please contact either Thomas G. Larsen, Chairman and CEO or Jorge Estepa, Vice-President at (416) 868-9168.
Information in this news release may contain forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company’s plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company. There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
VANCOUVER, BC, Feb. 22, 2022 /PRNewswire/ – Dolly Varden Silver Corporation (“Dolly Varden” or the “Company“) (TSXV: DV) (OTC: DOLLF), is pleased to announce that the Company’s shareholders have approved (i) the previously announced acquisition of Homestake Resource Corporation (“Homestake“) from Fury Gold Mines Limited (“Fury“) (TSX: FURY) (NYSE American: FURY) (the “Transaction“) and (ii) the resultant creation of a new “control person” of the Company, being Fury, upon completion of the Transaction, at a special meeting of Shareholders held today (the “Meeting“).
At the Meeting, the special resolution approving the Transaction and the creation of a new “control person” was approved by 98.8% the votes cast by Dolly Varden shareholders.
CEO, Shawn Khunkhun remarked “On behalf of the Board of Directors and Management, I would like to extend my gratitude to shareholders for supporting this accretive acquisition and the unification of the Kitsault Valley mineral deposit trend. With investors support, we have now positioned the company as creating one of the largest high-grade, undeveloped precious metals assets in BC’s Golden Triangle.”
Completion of the Transaction remains subject to a number of customary closing conditions, including the final approval of the TSX Venture Exchange (the “TSXV“). Assuming that all conditions to closing of the Transaction are satisfied or waived, the Transaction is expected to be completed on or about February 25, 2022.
Additional information regarding the terms of the Transaction, including a summary of the terms and conditions of the purchase agreement with respect to the Transaction, is set out in the information circular of Dolly Varden dated January 21, 2022, which is filed under Dolly Varden’s SEDAR profile at www.sedar.com.
About Dolly Varden Silver Corporation
Dolly Varden Silver Corporation is a mineral exploration company focused on exploration in northwestern British Columbia. The Dolly Varden Project consists of the namesake Dolly Varden silver property that hosts a unique pure silver mineral resource as well as the nearby Big Bulk copper-gold porphyry property. The Dolly Varden Project is considered to be highly prospective for hosting high-grade precious metal deposits, since it comprises the same structural and stratigraphic setting that host numerous other high-grade deposits (Eskay Creek, Brucejack). Dolly Varden has recently entered into an agreement with Fury to acquire the Homestake Ridge Project adjacent to the current Dolly Varden property to consolidate the Kitsault Valley Gold-Silver mineralization trend into one large, high-grade precious metals project with further exploration upside potential. The Big Bulk property is prospective for porphyry and skarn style copper and gold mineralization similar to other such deposits in the region (Red Mountain, KSM, Red Chris).
Forward Looking Statements
This release may contain forward-looking statements or forward-looking information under applicable Canadian securities legislation that may not be based on historical fact, including, without limitation, statements containing the words “believe”, “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “potential” and similar expressions. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Dolly Varden to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Forward looking statements or information relates to, among other things, completion of the Transaction, TSXV approval of the Transaction and the expected closing date of the Transaction. These forward-looking statements are based on management’s current expectations and beliefs and assume, among other things, the ability of Dolly Varden and Fury to satisfy customary closing conditions to the Transaction and the timely approval of the Transaction by the TSXV, but given the uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward-looking statements or information. The Company disclaims any obligation to update, or to publicly announce, any such statements, events or developments except as required by law.
For additional information on risks and uncertainties, see the Company’s most recently filed annual management discussion & analysis (“MD&A”), which is available on SEDAR at www.sedar.com. The risk factors identified in the MD&A are not intended to represent a complete list of factors that could affect the Company.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
Burlington, Ontario–(Newsfile Corp. – February 22, 2022) – Silver Bullet Mines Corp. (TSXV: SBMI) (‘SBMI’ or ‘the Company’) announces it has closed on $764,000, in its previously announced financing. This represents 1,910,000 Units, with each Unit priced at $0.40 (forty cents). Each Unit consists of one common share and one full 60-cent (sixty cent) warrant with a 24-month term, with each such warrant being exercisable into a common share (the “Financing”). There is no acceleration clause on such warrants. That pricing is at a 33% premium to the previous round of financing.
This is the first tranche of Units on which SBMI has closed. SBMI has subscription agreements in hand totalling roughly a further $500,000, which means SBMI will continue to close on further tranches over the next while as it collects funds.
These funds will be used to complete the process of putting the Buckeye Silver Mine into pilot production in March, 2022, to advance metallurgic work at the past-producing silver and gold Washington Mine in Idaho, and for working capital.
“What’s fascinating to me is the continued strong shareholder support,” said A. John Carter, SBMI’s CEO. “We are particularly pleased with the high percentage of subscribers in this financing who are already shareholders. Their repeat participation indicates a strong endorsement of SBMI’s business plan and our execution upon it. Because we took a non-traditional route, we remain on path to be in pilot production of silver this quarter.”
Referral fees may be paid to arm’s length persons in connection with the issuance of the Units. Other than the subscription agreement, there will be no further offering material provided to Existing Security Holders or others related to Financing. The subscription agreement is available at the Company’s website https://www.silverbulletmines.com/technical-corporatedocuments.
For further information, please contact:
John Carter Silver Bullet Mines Corp., CEO cartera@sympatico.ca +1 (905) 302-3843
Peter M. Clausi Silver Bullet Mines Corp., VP Capital Markets pclausi@brantcapital.ca +1 (416) 890-1232
Cautionary and Forward-Looking Statements
This news release contains certain statements that constitute forward-looking statements as they relate to SBMI and its subsidiaries. Forward-looking statements are not historical facts but represent management’s current expectation of future events, and can be identified by words such as “believe”, “expects”, “will”, “intends”, “plans”, “projects”, “anticipates”, “estimates”, “continues” and similar expressions. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that they will prove to be correct.
By their nature, forward-looking statements include assumptions, and are subject to inherent risks and uncertainties that could cause actual future results, conditions, actions or events to differ materially from those in the forward-looking statements. If and when forward-looking statements are set out in this new release, SBMI will also set out the material risk factors or assumptions used to develop the forward-looking statements. Except as expressly required by applicable securities laws, SBMI assumes no obligation to update or revise any forward-looking statements. The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to: the impact of SARS CoV-2 or any other global virus; reliance on key personnel; the thoroughness of its QA/QA procedures; the continuity of the global supply chain for materials for SBMI to use in the production and processing of ore; shareholder and regulatory approvals; activities and attitudes of communities local to the location of the SBMI’s properties; risks of future legal proceedings; income tax matters; fires, floods and other natural phenomena; the rate of inflation; availability and terms of financing; distribution of securities; commodities pricing; currency movements, especially as between the USD and CDN; effect of market interest rates on price of securities; and, potential dilution. SARS CoV-2 and other potential global viruses create risks that at this time are immeasurable and impossible to define.
Vancouver, British Columbia–(Newsfile Corp. – February 18, 2022) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9) (the “Company“, or “EMX“) is pleased to announce that its wholly-owned subsidiary, Bullion Monarch Mining, Inc., (“Bullion”) has reached a settlement with Barrick Gold Corporation (“Barrick”) and Barrick affiliates and subsidiaries (“Barrick Entities”) with respect to Bullion’s claim of non-payment of royalties by the Barrick Entities to Bullion on production from properties in the Carlin trend, Nevada. Bullion initiated litigation in 2008, before EMX acquired Bullion in 2012. Pursuant to the settlement, Barrick will pay Bullion US$ 25 million, of which US$ 6.175 million is owed as payment of the contingency fee to Bullion’s Reno, Nevada lawyers. The settlement of the lawsuit does not affect our 1% gross smelter return royalty from portions of Nevada Gold Mine’s Leeville, Turf and other underground gold mining operations, which will continue to be paid.
About EMX. EMX is a precious, base and battery metals royalty company. EMX’s investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company’s common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol “EMX”, as well as on the Frankfurt exchange under the symbol “6E9”. Please see www.EMXroyalty.com for more information.
For further information contact:
David M. Cole President and Chief Executive Officer Phone: (303) 973-8585 Dave@EMXroyalty.com
Scott Close Director of Investor Relations Phone: (303) 973-8585 SClose@EMXroyalty.com
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release may contain “forward looking statements” that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding completion of the transaction, perceived merits of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures, timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as “estimate,” “intend,” “expect,” “anticipate,” “will”, “believe”, “potential”, “upside” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to: unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors. It is possible EMX may not complete the transaction, as a result of failure to fulfill conditions of closing, unavailability of financing or for other reasons EMX cannot anticipate at this time.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company’s MD&A for the quarter ended September 30, 2021 and the year ended December 31, 2020 (the “MD&A”), and the most recently filed Revised Annual Information Form (the “AIF”) for the year ended December 31, 2020, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and financial statements of the Company, is available on SEDAR at www.sedar.com and on the SEC’s EDGAR website at www.sec.gov.
VANCOUVER, BC / ACCESSWIRE / February 17, 2022 / (CSE:ROO)(OTC PINK:JNCCF)(Frankfurt:5VHA) – RooGold Inc. (“RooGold” or the “Issuer“).
To Our Shareholders & Prospective Investors:
On February 9th 2022 RooGold announced their appointment of Carlos Espinosa as Chief Executive Officer (CEO), President and member of the Board of Directors, effective March 4th, 2022.
Carlos Espinosa comments, “As I transition into my role as CEO and President of RooGold, and with reconnaissance field work commencing at one of the Company’s flagship projects, I would like to take this opportunity to reach out to all RooGold shareholders and prospective investors. Specifically, I would like to recap RooGold’s substantial achievements in 2021, outline the Company’s immediate exploration plans for the first half of 2022 and importantly discuss the Company’s project acquisition strategy and commitment to value creation by reducing exploration risk”.
2021 Highlights
In 2021 RooGold consolidated a significant portfolio of high grade gold and silver properties in New South Wales Australia comprising 13 concessions within the prolifically mineralized New England and the Lachlan Orogens (Figure 1).
Concessions cover 1380 km2 and host at least 137 gold and/or silver mineralized showings, prospects and historical small scale mines.
Most concessions are located on regional scale structures with multiple gold and/or silver occurrences and mines along their length (Figure 1). Globally, the more significant gold and silver deposits are hosted along regional.
RooGold’s large land-holding, coupled with the large number of mineralized occurrences, prospects and historical mines, and diversity of deposit type, helps reduce exploration risk.
RooGold has acquired 100% of all properties, with no staged earn in payments, royalties or claw backs.
The Company has completed a comprehensive review of the extensive historical NSW government database and identified six priority concessions.
Figure 1: RooGold NSW concessions (Red) on a 90 m Digital Terrane Model showing showing gold (yellow) and silver (blue) occurrences and mines.
2022 Q1 & Q2 Work Program
RooGold’s immediate focus in 2022 will be rapid field reconnaissance of six high priority concessions that have been identified from the comprehensive data base review. RooGold’s work program will initially comprise of:
Acquisition of high resolution satellite and DEM data to provide a base for structural mapping and reconnaissance planning.
Establishment of a land-owner database and negotiation of land-owner access agreements for priority targets.
Reconnaissance mapping of six priority concessions, which will be followed by prospect mapping and target generation for the initial top three prospective properties.
Alexandra Bonner, RooGold’s Chief Operations Manager, comments, “The Company is preparing to commence its first field reconnaissance program at the end of February 2022 which will focus on the southern part of the Peel-Manning Fault system. RooGold will update investors in due course”.
Project Acquisition Strategy
RooGold’s acquisition strategy focused on reducing exploration risk through the acquisition of a large and diverse exploration portfolio of gold and silver targets, each hosting high grade showings, prospects and historical mines. Specifically:
Multiple Concessions: The likelihood of a mineral exploration discovery is generally better for companies with a diverse portfolio of targets, provided project acquisition is based on geological merit and project holding costs are sustainable.
Simple Deal Structure: RooGold holds 100% of all 13 concessions, with no staged earn in or joint venture payments. RooGold’s expenditures will be driven by exploration merit, not by deal terms.
Low Holding Costs: RooGold has committed to exploration expenditures of AUD $25,000 per concession in Year 1 and AUD $50,000 per concession in year two. This equates to AUD $325,000 Year 1 and AUD $650,000 Year 2, for all 13 concessions. RooGold has already met approximately AUD $175,000 of Year 1.
The Importance of Structure: Many factors influence the risk reward profile of exploration projects. This is highlighted by Figure 1 which shows a positive correlation between the distribution of gold mines, historical mines and prospects, and crustal scale structures. Some of these structures, such as the Peel-Manning Fault are suture zones marking former plate boundaries and associated magmatic arcs. Major faults provide fluid conduits for circulation of mineralizing fluids.
Figure 2: RooGold NSW concessions (Red) on an aeromagnetic base map. Note that regional scale structures exert a fundamental control on gold and silver mineralization.
Most of RooGold’s concessions are spatially associated with the major crustal structures, all of which are significantly gold mineralized along their length. Many of these structures have also shed significant gold alluvials, which is often a vector to hard rock mineralization.
Multiple Targets within Each Concession: Most concessions held by RooGold are large and contain multiple gold and/or silver showings, prospects and historical small scale mines. Not only does this speak to the prospectivity of each concession, but it provides multiple targets for a better risk reward profile.
High Grade: High grade exploration targets generally have a better exploration risk reward profile than low or marginal grade targets. A significant number of the 137 gold and/or silver mineralized showings, prospects and historical small scale mines have reported high to very high precious metal grades.
Very Limited Historical Drilling: Despite over 137 known high grade, gold and/or silver mineralized showings, prospects and historical small scale mines, only 28 holes have been drilled historically for 2046m. There has been almost no modern exploration across RooGold’s concessions, which allows for significant potential for discovery.
Carlos Espinosa notes, “RooGold’s extensive and highly prospective, yet largely under explored land holdings, in a stable and mining friendly country such as Australia, was an important factor in my decision to join RooGold as CEO. By owning multiple concessions, all 100% owned, with low holding and work commitment costs, and all with multiple high grade historical gold and silver showings, RooGold has sufficient exploration targets to significantly reduce the overall exploration risk”.
RooGold will be providing regular updates as the field program ramps up during Q1 of 2022.
ROOGOLD is a Canadian based junior venture mineral exploration issuer which is uniquely positioned to be a dominant player in New South Wales, Australia, through a growth strategy focused on the consolidation and exploration of high potential, mineralized precious metals properties in this prolific region of Australia. Through its announced acquisitions of Southern Precious Metals Ltd., RooGold Ltd. and Aussie Precious Metals Corp. properties, RooGold commands a portfolio of 13 high-grade potential gold (9) and silver (4) concessions covering 1,380 km2 which have 137 historic mines and prospects.
This press release may contain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur.
Although the Issuer believes that the expectations reflected in applicable forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in such statements.
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
VANCOUVER, BC / ACCESSWIRE / February 17, 2022 / Metallic Minerals (TSX.V:MMG | US OTCQB:MMNGF) (“Metallic Minerals“, or the “Company“) is pleased to announce drill results from the Central Keno target area, which intercepted high-grade silver mineralization within broad, bulk tonnage intervals akin to those recently discovered at East Keno but previously unknown in this part of Keno Hill. The Caribou target, in particular, is a top priority for resource definition and the Company is currently updating its 3D model based on drilling to date in anticipation of a robust 2022 campaign.
A total of 2,965 meters in 37 reverse circulation (“RC”) holes were completed throughout the Central Keno target areas out of 53 holes in the 6,200 meter (“m”) total 2021 Keno Silver program, along with 20.3 line-kilometers of deep-penetrating IP geophysical surveys. Results from the 26 holes from East and West Keno drilling remain pending.
Central Keno Highlights
32 of the 37 Central Keno RC holes intersected intervals of silver mineralization, with two holes lost short of target depth due to challenging ground conditions.
Multiple high-grade silver intervals were intersected, often within broader, silver-bearing, bulk-tonnage mineralized intervals representing a new target style not previously identified in Central Keno.
In addition to high-grade, vein-hosted silver typical of the Keno Hill district, significant, stacked regional scale thrust faults and associated high-grade epithermal systems have been identified as an additional host for silver mineralization, providing a major expansion of the district’s overall scale potential.
Caribou Target Highlights
Drilling at the advanced-stage Caribou target successfully extended high-grade silver mineralization to the north and 400 meters along strike to the south of the previously known extent of the Caribou structure.
A down-dip intersection, along the northern extent of the Caribou vein, returned some of the highest grades to date and validated the continuity of the high-grade structure at depth, with a 50-meter step out from previously confirmed mineralization.
Hole KS21-47 intersected 27.4 meters of 146.0 g/t silver equivalent1 (“AgEq”), including a high-grade interval of 3.05 meters (“m”) at 1150.8 g/t AgEq (562.06 g/t Ag, 1.48 g/t Au, 3.0% Pb, 6.96%Zn).
Hole KS21-55 intersected 19.8 m grading 119.1 g/t AgEq, including a high-grade interval of 1.52 m at 1009.8 g/t AgEq. (147 g/t Ag, 3.24% Au, 0.99% Pb, 10.90% Zn).
KS21-57 intersected 21.3 m of 147.3 g/t AgEq, including a high-grade interval of 3.05m at 694.9 g/t AgEq (476.35 g/t Ag, 0.40 g/t Au, 4.23% Pb, 0.37% Zn)
Hole KS21-63 intersected 15.2 m grading 97.2 g/t AgEq, including a high-grade interval of 1.52 m at 627 g/t AgEq (500 g/t Ag, 0.13 g/t Au, 2.35% Pb, 0.45% Zn).
Metallic Minerals Chairman & CEO, Greg Johnson, stated, “We are very encouraged by the results from our work in 2021 which has brought major new insights into the mineralizing controls across the Keno District, particularly at Central and East Keno. Our team has identified significant structural features indicative of regional scale thrust faults that appear to form important permeable zones for hosting high-tenor epithermal-style silver mineralization throughout the central and eastern parts of the Keno District. Work planned for 2022 will follow up on the confluence of these newly identified zones of thrust-associated high-grade epithermal-style silver mineralization with the main phase of Keno-style mineralization and its potential to host high-grade and bulk-tonnage resources.”
“Central Keno continues to show exceptional resource potential through the continued expansion of areas of known high-grade Keno-style silver mineralization, along with this newly recognized epithermal silver mineralization. Drilling in 2021 extended the Caribou target a further 400 meters along strike to the south as well as to the north and down dip, making it, along with the Formo target, a top priority for resource definition of significant scale. Drilling and surface sampling has similarly extended the Homestake target by more than a kilometer along strike, making this historic producer another focus for the 2022 program. Both the advanced-stage, historically productive Caribou and Homestake targets are host to well-defined areas with bonanza grades. Additional results from targets at East and West Keno are anticipated to be reported in the coming weeks, preceded by key updates with respect to our La Plata project in Colorado.”
Figure 1 – Keno Silver District Geology and Deposits
Central Keno Hill Silver District
The central part of the Keno Hill Silver District is host to over 100 million ounces of past production and current Indicated resources in shallow deposits that to date have not previously seen systematic exploration to depth or along strike. Central Keno was one of the original discovery areas in the region and hosted the historic producing Keno Hill mine, along with 8 other high-grade deposits including those on Metallic Minerals land holdings. Metallic Minerals’ work to date in this area shows the presence of a major structural corridor that is comparable in surface expression and structural setting to the +150 million-ounce Bermingham-Calumet system in the more extensively explored western part of the district.
Caribou Target Area
The Caribou target in the central part of the district is one of the most advanced individual targets at the Keno Silver Project. The Caribou deposit historically produced very high-grade material grading more than 1,000 g/t silver from near surface and is interpreted to be a significant connecting structure between the main shear structures in the Keno Summit structural corridor. The Caribou deposit spatially occurs within a high-level silver-in-soil anomaly of over 10 g/t AgEq that extends over 2.5 km long by 1.5 km in width and that remains open to expansion.
As part of the exploration program in 2021, Metallic Minerals completed the first-ever application of deep-sensing IP geophysics on the Keno Silver project using Simcoe Geoscience’s Alpha IPTM system. Two deep-looking IP lines were completed across the Central Keno area, which identified significant conductive features that spatially correspond with the newly mapped regional scale thrust fault structures and associated epithermal style silver mineralization. This IP survey in combination with the drilling and detailed mapping has allowed the Metallic Minerals technical team to identify major conductive features that are spatially associated with kilometer-scale soil and magnetic anomalies and significant silver mineralization. This combination of utilizing drilling, geophysics and soil sampling is a highly effective tool set for targeting mineralization across the Keno Hill silver district.
Figure 2 – Caribou Vein Long Section
Drilling in 2021 returned significant step out extensions of mineralization from the main Caribou deposit to the north, south and down dip. Eight of these holes intersected continuous mineralized zones from 15 to 64 m width including a 400-meter step out that encountered 15.2 m grading 97.2 g/t AgEq with 1.5 m grading 628 g/t AgEq (500 g/t Ag, 0.13 g/t Au, 2.35% Pb, 0.45% Zn). This zone appears to be spatially associated with the location of one of the newly mapped regional thrust faults that can host high-grade epithermal silver mineralization. The high-level silver-in-soil anomaly continues for another 1.5 km to the south along strike from this southernmost drill hole at Caribou.
In addition, holes KS21-46 and -47 tested extension of the Caribou deposit to the north and downdip. These holes both confirmed the continuation of strong silver tenor both on strike to the north and at depth with KS21-47 returning one of the highest-grade down dip holes drilled to date intersecting 1597 g/t AgEq over 1.5 meters within a mineralized zone of 27.4 m width grading 146 g/t AgEq.
Table 1- Highlight 2021 Drill Results from the Caribou Target
Hole
From (m)
To (m)
Width (m)
AgEq (g/t)
Ag (g/t)
Au (g/t)
Pb (%)
Zn (%)
KS21-46
42.67
44.2
1.53
71.6
1.5
0.73
0.01
0.00
79.25
94.49
15.24
81.9
18.7
0.04
0.17
1.11
incl
79.25
88.39
9.14
85.6
24.0
0.03
0.23
1.05
incl
80.77
82.3
1.53
448.7
125.0
0.13
1.29
5.51
incl
92.96
94.49
1.53
260.4
31.0
0.20
0.22
4.29
KS21-47
92.96
120.4
27.44
146.0
70.6
0.18
0.40
0.88
incl
109.73
112.78
3.05
1150.8
562.1
1.48
3.00
6.96
incl
109.73
111.25
1.52
1597.1
850.0
1.05
2.57
11.46
KS21-52
0
62.48
62.48
35.3
21.9
0.01
0.23
0.07
incl
1.52
25.91
24.39
79.7
51.9
0.02
0.55
0.09
incl
7.62
12.19
4.57
297.0
191.3
0.09
2.16
0.26
incl
9.14
10.67
1.53
500.6
340.0
0.22
2.94
0.49
KS21-54
16.76
42.67
25.91
53.4
35.2
0.01
0.30
0.11
incl
21.34
36.58
15.24
83.8
57.4
0.01
0.50
0.12
incl
22.86
24.38
1.52
517.0
387.0
0.07
2.74
0.30
KS21-55
44.2
76.2
32
75.6
14.8
0.19
0.09
0.82
incl
44.2
64.01
19.81
119.1
22.7
0.30
0.15
1.30
incl
50.29
60.96
10.67
210.8
37.1
0.55
0.26
2.34
incl
50.29
54.86
4.57
467.2
75.8
1.29
0.58
5.21
incl
51.82
53.34
1.52
1009.8
147.0
3.24
0.99
10.90
KS21-57
33.53
54.86
21.33
147.3
100.4
0.07
0.93
0.09
incl
33.53
42.67
9.14
332.4
227.7
0.16
2.15
0.15
incl
35.05
41.15
6.1
486.9
335.2
0.23
3.12
0.20
incl
35.05
38.1
3.05
694. 9
476.4
0.40
4.23
0.37
KS21-61
33.53
77.72
44.19
24.9
11.0
0.01
0.04
0.23
incl
50.29
59.44
9.15
102.6
47.7
0.05
0.16
0.92
incl
51.82
53.34
1.52
337.1
170.0
0.21
0.30
2.83
KS21-63
30.48
45.72
15.24
97.2
75.2
0.02
0.40
0.08
incl
30.48
38.1
7.62
160.1
125.2
0.03
0.65
0.12
incl
33.53
35.05
1.52
627.8
500.0
0.13
2.35
0.45
1Silver equivalent (Ag Eq) values assume Ag $19/oz, Pb $1.05/lb, Zn $1.30/lb, Au $1,800/oz and 100% metallurgical recovery. Sample intervals are based on measured drill intercept lengths.
Exploration to date has hit more than 70 mineralized intersections on the Caribou system over a strike distance of 700 m and down to 100 m depth. The Caribou deposit remains open to expansion to the south, north and down dip making it a top priority for resource focused drilling efforts in 2022. The highlighted results in Table 1 above build upon prior diamond drilling on the Caribou target by Metallic Minerals, results of which can be found here.
Metallic will look to follow up the 2021 success with diamond drilling in 2022 with intent to establish an initial resource at Caribou. Additional diamond drilling will be planned to test the newly extended southern strike and provide context for its association with the thrust structure. Importantly, 2021 drilling encountered ultra-high-grade, Keno-style vein intersects within much broader, bulk tonnage intervals similar to those discovered previously at East Keno in 2020.
Homestake
The historically productive Homestake target is located south of the Keno Summit target area along a parallel structural corridor. The style of the Homestake structure is comparable to those seen at the Keno Summit and in the more developed Western Keno areas. Homestake is comprised of two parallel vein structures within a broad structural corridor over 200 meters wide that has a demonstrated strike length of over 1 km in the host Keno Hill quartzite. Homestake #1 vein shows classic Keno-style, high-grade silver-lead-zinc mineralization, while the #2 vein can also show high gold grades with silver, which is characteristic of some structures in the larger deposits within the Keno Hill Silver District. The highest grades to date include assays of 4,027 g/t silver from drilling and 4,717 g/t silver from trenching on the Homestake #1 vein, and 22.1 g/t gold with 332 g/t silver from trenching on the Homestake #2 vein Prior drill results from Homestake can be found here.
To date there are 21 drilled vein intersections grading more than 600 g/t silver equivalent on the Homestake structures, including five that exceed 10 g/t gold on the Homestake #2 structure. Work in 2021 at Homestake focused on wide-spaced reconnaissance drilling along the main trends as well as extension of the open-ended soil anomalies. The soil sampling work expanded the high-level silver-in-soil anomaly associated with the Homestake mineralized system to 3 km in length by 1.5 km in width with the anomalies still open to further expansion. Intersections of anomalous silver over significant widths indicate a strike length of 1.5 km for the Homestake system. The next phase of systematic testing of these structures will be designed to delineate areas of the high-grade and bulk-tonnage toward development of an initial resource at Homestake.
About the Keno Silver Project
Exploration by Metallic Minerals at the Keno Silver project continues to systematically build on the Company’s 3D geologic database covering the east, central and western portions of the prolific Keno Hill silver district. The project includes eight high-grade, shallow past-producing mines that have yet to be subjected to modern exploration due to previously unconsolidated land ownership. Along the known, historically productive trends in the central and western parts of the district, the Company has advanced three targets towards an initial resource estimate along with identifying 12 priority multi-kilometer-scale early-stage targets in the under-explored eastern and southern parts of the district where initial drilling has returned significant high-grade Keno-style mineralization as well as bulk-tonnage style silver mineralization.
About Metallic Minerals
Metallic Minerals Corp. is a growth-stage exploration company, focused on high-grade silver and gold projects in underexplored, brownfields mining districts of North America. Our objective is to create shareholder value through a systematic, entrepreneurial approach to exploration in the Keno Hill silver district, La Plata silver-gold-copper district, and Klondike gold district through new discoveries and advancing resources to development. Metallic Minerals has consolidated the second-largest land position in the historic Keno Hill silver district of Canada’s Yukon Territory, directly adjacent to Alexco Resource Corp’s operations, with nearly 300 million ounces of high-grade silver in past production and current M&I resources. In addition, exploration at the recently acquired La Plata silver-gold-copper project in southwestern Colorado is targeting a silver and gold-enriched copper porphyry and adjacent high-grade silver and gold epithermal systems. The Company also continues to add new production royalty leases on its holdings in the Klondike gold district in the Yukon. All three districts have seen significant mineral production and have existing infrastructure, including power and road access. Metallic Minerals is led by a team with a track record of discovery and exploration success on several major precious and base metal deposits, as well as having large-scale development, permitting and project financing expertise.
About the Metallic Group of Companies
The Metallic Group is a collaboration of leading precious and base metals exploration companies, with a portfolio of large, brownfields assets in established mining districts adjacent to some of the industry’s highest-grade producers of silver and gold, platinum and palladium, and copper. Member companies include Metallic Minerals in the Yukon’s high-grade Keno Hill silver district and La Plata silver-gold-copper district of Colorado, Group Ten Metals in the Stillwater PGM-nickel-copper district of Montana, and Granite Creek Copper in the Yukon’s Minto copper district. The founders and team members of the Metallic Group include highly successful explorationists formerly with some of the industry’s leading explorer/developers and major producers. With this expertise, the companies are undertaking a systematic approach to exploration using new models and technologies to facilitate discoveries in these proven, but under-explored, mining districts. The Metallic Group is headquartered in Vancouver, BC, Canada, and its member companies are listed on the Toronto Venture, US OTC, and Frankfurt stock exchanges.
Forward Looking Statements: This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts including, without limitation, statements regarding potential mineralization, historic production, estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. Although Metallic Minerals believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Group Ten and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Vancouver, British Columbia–(Newsfile Corp. – February 17, 2022) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9) (the “Company” or “EMX”) is pleased to announce the execution of an agreement on February 14, 2022 to sell its Mo-i-Rana volcanogenic massive sulfide (“VMS“) project in Norway (the “Project“) to Mahvie Minerals AB (“Mahvie“), a private Swedish Company. In return for the transfer of the Project to Mahvie, the agreement provides EMX with a 9.9% equity interest in Mahvie, annual advance royalty payments, 2.5% Net Smelter Return (“NSR“) royalty interests, work commitments, and other considerations. In conjunction with the Mo-i-Rana transaction, Mahvie intends to establish a public listing on one of the Nordic exchanges. This is anticipated sometime in Q2, 2022.
The Mo-i-Rana VMS belt was acquired by EMX in 2021 (see EMX News Release dated April 6, 2021). This VMS belt is situated in central Norway and contains numerous polymetallic (zinc-lead-copper-silver-gold) occurrences and historical mines (see Figures 1 and 2). Over 200 mines and prospects with VMS and carbonate replacement (“CRD“) styles of mineralization are located within the Mo-i-Rana project area, including ten former producing mines.
EMX and Mahvie will work together to explore the Project, where considerable exploration upside exists at many of the historical occurrences and mines. Much of the historical exploration work was done at a time when VMS models were only poorly understood and only limited portions of the nine individual VMS horizons that exist in the belt have been tested to date. Additionally, most historical drilling was shallow (i.e., less than 100 meters) and clustered around the historical mine workings. EMX and Mahvie will apply modern exploration methods and deposit models to seek additional discoveries in the belt.
Commercial Terms Overview. Via an arm’s length transaction, Mahvie will acquire a 100% interest in the EMX subsidiary company that controls the Project, subject to the following terms:
Upon closing, EMX will receive 75,000 Norwegian Krone (approximately US$8,500 at current exchange rates) in cash and 9.9% of the issued and outstanding shares of Mahvie Minerals AB.
EMX will receive a 2.5% NSR royalty interest in the Project. On the sixth anniversary after closing, Mahvie has the option to purchase 0.5% of the NSR on the Project by paying EMX US$1,500,000.
EMX will receive annual advance royalty (“AAR“) payments of US$25,000 for the Project commencing on the third anniversary of the closing, with the AAR payment increasing by US$5,000 per year until reaching US$100,000.
A financial instrument will be put in place that allows EMX to maintain its 9.9% interest in Mahvie until a total of 25,000,000 Swedish Kronor (approximately US$2.7 million at current exchange rates) has been raised by Mahvie.
A payment of US$500,000, payable in cash or shares of Mahvie, will be made to EMX upon the completion of a Prefeasibility or Feasibility study.
To maintain its interest in the Project, Mahvie will also: (i) spend a minimum of US$200,000 on the Project by the first anniversary of the agreement and (ii) spend aggregate of US$1,000,000 by the third anniversary of the agreement or complete a minimum of 2,000 meters of drilling on the Project.
Mo-i-Rana VMS Belt. VMS and CRD style polymetallic deposits are developed in the Rana-Hemmes metallogenic region of Norway, which is also host to the prolific Rana Gruber iron mines as well as the nearby Bleikvassli Zn-Pb-Cu-Ag deposit, an EMX royalty property (see Figure 1). This metallogenic area represents a tectonically displaced continuation of the Cambrian-Ordovician VMS belts in northeastern North America, which includes the Buchans and Bathurst VMS camps in eastern Canada, and also the Avoca VMS district in Ireland. As such, this represents one of the more prolific VMS belts in the world in terms of total production from its various mining districts, albeit now tectonically displaced and occurring along opposite sides of the Atlantic Ocean.
The most notable historical producer within the Project area is the Mofjell Mine (the core of which remains covered by state-owned mining licenses) which produced 4.35 million tonnes at 3.61% Zn, 0.71% Pb, and 0.31% Cu from 1928-1987[1]. The deposit consists of three rod-shaped elongate VMS lenses, approximately 100 meters wide that extend for lengths of up to 2.8 kilometers. Just prior to mine closure, high gold and silver grades were discovered as disseminations in wall rocks within the historical mine workings (such as 2.8 meters averaging 3.88 g/t gold and 44.3 g/t silver in underground drill hole DD1313 and 3.7 meters averaging 2.30 g/t gold and 75.7 g/t silver in underground drill hole DD781A; true widths unknown[2]) but were never followed up[3]. This underscores the potential for additional discoveries of precious-metal enriched zones of mineralization in the belt.
In 2008, a partnership between industry, the Norwegian Geological Survey (NGU) and the local county administration was formed to investigate additional potential in the Mo-i-Rana belt. This effort generated high resolution airborne geophysical data sets, as well as district scale mapping and geochemical sampling campaigns carried out by the NGU. These represent key data sets that EMX and Mahvie intend to utilize for further advancement of the Project.
Comments on Sampling, Assaying and Adjacent Properties. Samples and geochemical assays mentioned in this news release are reported by Norwegian Geologic Survey. EMX has not performed sufficient work to verify the Project’s historical drill results or production data, but considers this information as reliable and relevant based upon the Company’s reviews of data from multiple independent sources. Additional drilling and sampling would be required to confirm these results.
The Mofjell Mine and other nearby mines and deposits discussed in this news release provide context for EMX’s Project, which occurs in a similar geologic setting, but this is not necessarily indicative that the Company’s Project hosts similar mineralization.
Dr. Eric P. Jensen, CPG, a Qualified Person as defined by National Instrument 43-101 and employee of the Company, has reviewed, verified and approved the disclosure of the technical information contained in this news release.
About EMX. EMX is a precious, base and battery metals royalty company. EMX’s investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company’s common shares are listed on the NYSE American Exchange and the TSX Venture Exchange under the symbol EMX, as well as on the Frankfurt Exchange under the symbol “6E9”. Please see www.EMXroyalty.com for more information.
For further information contact:
David M. Cole President and Chief Executive Officer Phone: (303) 973-8585 Dave@emxroyalty.com
Scott Close Director of Investor Relations Phone: (303) 973-8585 SClose@emxroyalty.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release may contain “forward-looking statements” that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding perceived merit of properties, exploration results and budgets, mineral reserve and resource estimates, work programs, capital expenditures, timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as “estimate,” “intend,” “expect,” “anticipate,” “will”, “believe”, “potential” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to: unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company’s MD&A for the quarter ended September 30, 2021 and the year ended December 31, 2020 (the “MD&A”), and the most recently filed Revised Annual Information Form (the “AIF”) for the year ended December 31, 2020, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and financial statements of the Company, is available on SEDAR at www.sedar.com and on the SEC’s EDGAR website at www.sec.gov.
Figure 1: Location map for the Mo-i-Rana VMS belt in Norway.
[1] Bjerkgård, et. al (2013). The Mofjell Project: Summary and conclusions. NGU (Norwegian Geological Survey) Report 2013.048.
[2] Bergverkselskapet Nord-Norge A/S, 1987. As Reported by Directorate of Mining Norway. The historical drilling was completed by Bergverkselskapet Nord-Norge A/S, 1987 and archived by the NGU. EMX believes these results to be reliable and relevant.
[3] Bjerkgård, et al (2001). Ore Potential with emphasis on gold in the Mofjellet deposit, Rana, Nordland, Norway. NGU Report 2001.050.
